Becoming bankrupt
Restrictions
When you’re bankrupt, you cannot:
- borrow more than £500 without telling the lender you’re bankrupt
- act as a director of a company without the court’s permission
- create, manage or promote a limited company without the court’s permission
- run a business without giving your name when you were made bankrupt to the people you do business with - as well as any business name you used
You might be prosecuted if you break the restrictions.
How long the restrictions last
Restrictions last until your bankruptcy ends or you successfully apply to cancel your bankruptcy.
When the restrictions can be extended
The person dealing with your bankruptcy (the ‘official receiver’) can get the time that you’re under these restrictions for extended if they believe you’ve acted carelessly or dishonestly.
They’ll ask you to agree to a bankruptcy restrictions undertaking to extend the restrictions. If you do not agree, they’ll ask the court to make a bankruptcy restrictions order.