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Bankruptcy applies to sole traders and people that have given personal guarantees for loans.

An application for a bankruptcy order can be made by one or more of your creditors owned at least £750 and you can even apply for bankruptcy yourself. Although bankruptcy is one way of dealing with the debts you cannot pay, it is still a very humiliating and public experience. There are other alternatives and Bramley Carrington can advise you on the best course of action to take.

Bankruptcy will mean the closure of your business, the dismissal of your employees and you will have to relinquish any possessions of value and lose all rights to any property you own apart from any tools you need for business purposes and domestic equipment – clothes, bedding and furniture.

You will not be able to carry on a business without advising the people whom you are doing business with the name in which you were made bankrupt. You will not be able to form or manage a limited company or act as company director without the courts permission. You may not hold public office and you will not be able to act as trustee for a charity of pension scheme. You will not be able to obtain credit of £500 or more, either alone or jointly, without disclosing your bankruptcy. After the bankruptcy order has been made, you may open a bank account but you must inform the bank or building society of your bankruptcy and they will impose restrictions. If there is any money in the account and it is more than you need for your day to day living expenses you must tell your Trustee. He can claim the surplus amounts to pay to your creditors.