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Bankruptcy Obligations

The following list outlines the main bankruptcy obligations:

  • You must divulge to the official receiver, all records of assets, income, expenditure and a list of the people or companies you owe money to.
  • Take proper care of all your assets and hand them over to the Official Receiver with the relevant documentation for them such as insurance certificates, receipts and proof of purchase paperwork.
  • You must also work closely with your Insolvency Practitioner or Receiver, informing them of any changes in your financial situation. Pay raises, pay cuts, inheritance, new assets or anything that affects your financial situation must be immediately declared.
  • You must cease using credit cards and bank or building society accounts with immediate effect. Failure to do so will put you in breach of your bankruptcy agreement. You are also not allowed to borrow over £500 without telling the creditor that you are officially bankrupt.
  • You must not make payments directly to your creditors now that you are bankrupt. All your payments must go through your trustee or Insolvency Practitioner. There are a couple of exceptions to this such as child maintenance payments and any mortgage arrears you may have accrued. This is for your own protection as much as for the protection of your creditors.

In some cases, you may have to attend county court and give a formal explanation of the circumstances surrounding your debt, and your failure to pay back your creditors.