Bankruptcy restrictions

This section covers the restrictions if a bankruptcy order has been made against you.


You must not obtain credit of £500 or more either alone or jointly with any another person without disclosing your bankruptcy. (Note: this is not just borrowing money - it includes your getting credit as a result of a statement or conduct which is designed to get credit, even though you have not made a specific agreement for it. For example, ordering goods without asking for credit and then failing to pay for them when they are delivered).

You must not carry on business (directly or indirectly) in a different name from that in which you were made bankrupt, without telling all those with whom you do business the name in which you were made bankrupt.

You must not be concerned (directly or indirectly) in promoting, forming or managing a limited company, or acting as a company director, without the High Court's permission, whether formally appointed as a director or not.

You may not hold certain public offices. You may not hold office as a trustee of a charity or a pension fund.

After the bankruptcy order

After the bankruptcy order, you may open a new bank or building society account but you should tell them you are bankrupt; they may impose conditions and limitations. You should ensure you do not obtain overdraft facilities without informing the bank that you are bankrupt, or write cheques which are likely to be dishonoured. Tell your trustee about any money that you have in the account which is more than you need for your reasonable living expenses. Your trustee can claim the surplus amounts to pay your creditors.

Access our guidance leaflet: What will happen to my bank account.

Bankruptcy Restrictions Orders and Undertakings

If, during his enquiries into your affairs, the Official Receiver decides that you have been dishonest either before or during the bankruptcy or that you are otherwise to blame for your position, he may apply to the court for a bankruptcy restrictions order.

The court may make an order against you for between two and 15 years and this order will mean that you continue to be subject to the restrictions of bankruptcy. You may give a bankruptcy restrictions undertaking which will have the same effect as an order, but will mean that the matter does not go to court.

If you are subject to a Bankruptcy Restrictions order or Undertaking, you may not hold certain public offices such as not being able to act as a local councillor.

For more information please view: Bankruptcy Restrictions Orders.

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