declare

What happens after you are declared bankrupt



Sharing buttons:

hello my name is Liesl cook and I'm an

insolvency service official receiver

while that sounds very serious an

official receiver is someone whose job

it is to manage bankruptcies in a

previous video you heard list Thomas

talk about the basics of bankruptcy and

in this video I want to explain a bit

more about what happens after your

bankruptcy holder is made and how

bankruptcy can help you change your

current situation for those individuals

for whom bankruptcy is the right option

it's a way to take control of their

situation so what really happens after

you're declared bankrupt as soon as your

bankruptcy order is made you stop making

payments towards most of your debts most

of your creditors also have to stop

contacting you and asking you for money

this is because an official receiver

like me takes over we look at your

circumstances contact your creditors and

work out how best to pay back what you

can afford

you'll get a letter from us within two

weeks of being made bankrupt explaining

all this and letting you know if we need

any more information from you the

official receiver will then use the

non-essential things you own to help pay

back as much of your debts as possible

this usually does not include any

household items like your clothes and

furniture or items you need for your job

like tools or a vehicle well we may need

to sell other important items like your

house will explain your options to you

before we do anything our aim isn't to

take everything from you but to manage

fair repayment of your debts we will

also look at your income and your

outgoings if we find that you have spare

income each month after paying your

bills and other essentials we may also

set up a monthly payment plan for you

this plan will help you pay back some of

the money you owe and usually last for

three years but you won't have to do

this if you don't have the money you'll

have to follow certain rules called

bankruptcy restrictions during your

bankruptcy for example you won't be able

to run a limited company or borrow more

than five hundred pounds without telling

the lender you're bankrupt after twelve

months your bankruptcy will be over most

of your debts will be cleared and the

bankruptcy restrictions I just mentioned

will usually end there are some debts

that can't be cleared by bankruptcy or

any other debt relief option and you can

find out more about them on gulf dot uk'

in normal cases your bankruptcy will

show on your credit report for six years

after it begins if you're struggling

with unmanageable debt bankruptcy is one

way you can take control of the

situation but there are other options

that you should also consider you can

find out more about all your options on

gulf --qk you can also get help and

guidance from a debt advisor the Money

Advice service has information about

where you can get free help and advice

from a debt advisor

you