Bankruptcy

 

Only individuals or individual members of a partnership can be made bankrupt, after a petition has been presented to court because they can not pay their debts. 

A trustee will be responsible for realising any of your assets and distributing the funds among your creditors.

With the introduction of the Insolvency (Northern Ireland) Order 2005 from 27 March 2006 the discharge period in Northern Ireland will now be 12 months from the date the bankruptcy order is made.

For a free, no obligation discussion, please contact a member of our team

on 028 87721194.

 

Frequently Asked Questions

Q. Is discharge from bankruptcy automatic?

A. No, if the bankrupt’s conduct has been irresponsible or culpable in some way, he may have the restrictions of his bankruptcy increased by up to 15 years.

Q. How does it affect the family home?

A. Your home may be sold if there is a surplus between its value, less any mortgage and loans secured upon it. If the home is jointly owed, then it is only your share of the surplus that the trustee is entitled to receive. The trustee can't realise his interest in the property until 12 months after the bankruptcy order if there are dependents. You must maintain your mortgage payments in this period.

Q. Can I work if I am bankrupt?

A. You are entitled to continue working when you are bankrupt, however you will be expected to contribute 50% of any surplus disposable income i.e. the surplus left from your salary after reasonable living expenses have been deducted.

Q. What are the restrictions on me?

A. The main restrictions are in respect of:

  1. Continuing to trade – you must trade under the name that you were adjudicated bankrupt.

  2. Credit – you can not obtain credit for more than £500 without advising the person giving the credit, that you are an un-discharged bankrupt.

  3. Acting as a director – you can’t act as a director while you are an un-discharged bankrupt. You are not allowed to be involved with the promotion, formation or management of a company until you are discharged.

 

If you have any queries, please do not hesitate to contact our team on 028 87721194.

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