Bankruptcy Frequently Asked Questions

Q: Does bankruptcy have long lasting consequences?

A: Absolutely yes. Once you declare bankruptcy you’ll find it difficult to obtain services from banks, credit card companies and others.

Q: How will bankruptcy affect my job?

A: In certain professions, you risk losing your job. You cannot be the director of a company without the prior permission of the court. If you are self-employed, normally your business will be closed down.

Q: Who will handle my bankruptcy?

A: Your bankruptcy would be handled either by the Official Receiver who will act as your trustee in bankruptcy. Alternatively, an Insolvency Practitioner (IP) can also be appointed. Your Trustee will be responsible for taking care of your financial affairs and making a full report to your creditors.

Q: Will my mortgage lender find out about my bankruptcy status?

A: Bankruptcy is made public and so the 'Official Receiver' or 'Trustee in Bankruptcy' will notify the building society, bank and any other secured lenders of his interest in the Bankrupt's property. This will occur irrespective of the fact that the repayments on a mortgage are in arrears or not.