After you have been declared bankrupt, you will be obligated to adhere to certain ‘bankruptcy restrictions’. Breaching these restrictions could potentially have severely damaging ramifications, so it is imperative that you are aware of what you are and aren’t able to do whilst bankrupt, particularly with your activity within your financial affairs.
The following page will outline the financial restrictions you are expected to abide by whilst you have a bankruptcy order against you, so that you can avoid any complications that may have otherwise arisen in the future.
What you can’t do
- Take out a loan over £500 without alerting the creditor that you are currently bankrupt
- Function in a company director role.
- Start up, manage or advertise a business without first acquiring the court’s consent.
- Assume the role of business manager under a different name without alerting the individuals you are conducting business with that you are currently undergoing bankruptcy.
- Be employed as an insolvency practitioner.
It is imperative that you remember it is a criminal offence to breach these restrictions and you might find yourself being prosecuted if you end up doing so.
Under the terms of your bankruptcy, you are legally required to co-operate with all parties that manage your bankruptcy, and supply them with all personal financial information that they request from you.
The length of your ‘bankruptcy restrictions’
Your restrictions will be applicable to you until you are officially discharged from your bankruptcy order. Typically, this is exactly one year from the day the court formally declared your bankruptcy, though this might be extended if it arises that you failed to co-operate with the parties tasked with managing your bankruptcy.
If you are currently bankrupt, and would like to know when your restrictions will be officially lifted, then have a look at the Individual Insolvency Register in order to obtain this information.
When the restrictions can be extended
If it arises that you have failed to adhere to bankruptcy regulations and haven’t complied with the people tasked with managing your bankruptcy, then your bankruptcy restriction period may be elongated.
Your official receiver will alert you if this is to happen and you will generally be able to avoid this occurring as long as you uphold the terms and conditions of your bankruptcy.
If you are someone who has been told that your bankruptcy restrictions are set to be extended, then you will soon be asked to consent to the arrangement. If you reject the extension, then a request will be made to the court have a Bankruptcy Restrictions Order placed against you.