Becoming bankrupt
After you've become bankrupt
You’ll receive a copy of the bankruptcy order. Your name and address will be published in the Gazette and the Individual Insolvency Register.
You’ll usually hear from the person dealing with your bankruptcy (the ‘official receiver’) within 2 weeks of getting your bankruptcy order. You’ll get information about what you must do.
People who’ll deal with your bankruptcy
The official receiver will usually deal with your bankruptcy from start to finish. They’ll also be known as the ‘trustee’.
Sometimes, the people and organisations you owe money to can ask for a different trustee to take over dealing with your bankruptcy from the official receiver. You’ll be told if this happens. You’ll still need to give information to the official receiver if they ask you to.
What you must do
When the official receiver or trustee asks you, you must give them any information they ask you for. This can include:
- information about your finances, including any money you are owed
- a list of everything valuable you own
You must tell the official receiver or trustee immediately if:
- you’re running a business
- the things you own need protecting - for example because other people might claim them, or they’re at risk of damage or theft
- the things you own need to be made safe to protect others - for example a building you own is unsafe or you have hazardous substances
You must tell the official receiver or trustee about any change to your income or possessions during your bankruptcy, for example if you find out you’re coming into an inheritance.
If you do not give the official receiver or trustee the information they ask for
They can:
-
ask you to go to court to explain why
-
ask the court to delay the end of your bankruptcy so it lasts longer
What the official receiver does
They’ll:
-
check the information you give them about your debts, your finances and the things you own
-
answer your questions about the bankruptcy process, if they can
The official receiver might want to interview you. If they do, the interview could take place over the phone, by video call or in person. They might:
- ask for more details, for example about your vehicles and bank accounts
- ask how and why you became bankrupt
The official receiver will send a report to the people and organisations you owe money to, including details of the things you own and your debts. This usually takes 4 weeks but can take up to 12.
While you’re bankrupt
There are some things you will not be able to do.
If your possessions are valuable, the trustee may sell them. This can include selling your home but only if you have equity in it.
The trustee will decide how much spare income you have. This will depend on how much of it you need to live on.
The trustee will use your spare income and the money from selling your valuable possessions to pay for your bankruptcy and to make payments towards your debts.
Find out what happens to your money and income if you’re made bankrupt.