viki
10-02-2007, 04:09 AM
What are the duties of a bankrupt?
When a bankruptcy order has been made, you must provide the Official Receiver with information relating to your financial affairs such as, a list of your assets (property, pensions, insurance policies etc), amounts of each debt and to which creditor they are owed to, within 21 days.
Any assets are then to be handed over to the Official Receiver along with any bank statements and insurance policies relating to your property and financial affairs.
Any assets and income increases obtained during the bankruptcy should be declared to the Trustee.
You must not obtain credit of £250 or more from any person without first disclosing the fact that you are bankrupt.
Any bank or building society accounts must no longer be used.
You must not make any direct payments to your creditors.
You may also have to attend Court to explain why you are in debt. If you do not co-operate, you could be arrested.
What are the effects of Bankruptcy?
Once you have been made bankrupt all assets belonging to you come under the control of the Trustee, including your home.
Where the home is co-owned, the debtor’s interest can still be realised, but a right of occupation period of twelve months is allowed for the disposal of the property if a co-owner, family or dependents of the debtor occupy it. At the end of the twelve-month period, the property will almost certainly have to be put up for sale, enforced by a Court order if necessary.
The other main disadvantages of bankruptcy are the constraints forced upon the bankrupt and the stigma of having to declare oneself as a bankrupt for certain transactions.
A bankrupt may not:
Obtain credit of £250 or more alone or jointly with another person without disclosing his or her bankruptcy
Conduct business directly or indirectly in any name other than that in which he or she was made bankrupt
Be involved directly or indirectly in promoting, forming or managing a company without the Court’s permission
Hold certain public officesWhen a bankrupt is discharged these constraints are ended.
A bankrupt may open a new bank or building society account but should disclose the fact that they are bankrupt. The bank or building society may then impose conditions and limitations. Overdraft facilities or chequebooks must not be obtained, as they are likely to be dishonoured. The bankrupt must inform the Trustee of any funds available in the account, which exceed the normal living expenses, in order for the Trustee to distribute among the creditors.
When a bankruptcy order has been made, you must provide the Official Receiver with information relating to your financial affairs such as, a list of your assets (property, pensions, insurance policies etc), amounts of each debt and to which creditor they are owed to, within 21 days.
Any assets are then to be handed over to the Official Receiver along with any bank statements and insurance policies relating to your property and financial affairs.
Any assets and income increases obtained during the bankruptcy should be declared to the Trustee.
You must not obtain credit of £250 or more from any person without first disclosing the fact that you are bankrupt.
Any bank or building society accounts must no longer be used.
You must not make any direct payments to your creditors.
You may also have to attend Court to explain why you are in debt. If you do not co-operate, you could be arrested.
What are the effects of Bankruptcy?
Once you have been made bankrupt all assets belonging to you come under the control of the Trustee, including your home.
Where the home is co-owned, the debtor’s interest can still be realised, but a right of occupation period of twelve months is allowed for the disposal of the property if a co-owner, family or dependents of the debtor occupy it. At the end of the twelve-month period, the property will almost certainly have to be put up for sale, enforced by a Court order if necessary.
The other main disadvantages of bankruptcy are the constraints forced upon the bankrupt and the stigma of having to declare oneself as a bankrupt for certain transactions.
A bankrupt may not:
Obtain credit of £250 or more alone or jointly with another person without disclosing his or her bankruptcy
Conduct business directly or indirectly in any name other than that in which he or she was made bankrupt
Be involved directly or indirectly in promoting, forming or managing a company without the Court’s permission
Hold certain public officesWhen a bankrupt is discharged these constraints are ended.
A bankrupt may open a new bank or building society account but should disclose the fact that they are bankrupt. The bank or building society may then impose conditions and limitations. Overdraft facilities or chequebooks must not be obtained, as they are likely to be dishonoured. The bankrupt must inform the Trustee of any funds available in the account, which exceed the normal living expenses, in order for the Trustee to distribute among the creditors.