What will happen to my home?

If you’re thinking ‘what will happen to my home if I’m made bankrupt?’ you’re not alone. click on the title above and you will see some of the frequently asked questions relating to this subject

Who is the Official Receiver?

The Official Receiver works for the Insolvency Service and is an officer of the court. Once notified of your Bankruptcy notification, the Official Receiver will guide you through the process; take control of your assets and ensure creditors are repaid.

What happens after Bankruptcy?

You could be freed from the obligations under a Bankruptcy Order after 12 months. This means you will be freed from the debts listed in the Bankruptcy Order, unless certain restrictions have been applied to your case. In this instance, you will be made aware of these restrictions before Bankruptcy proceedings.

Exceptions include debts arising from fraud, certain crimes and fines. Other debts such as damages or personal injury or money owed under family proceedings (such as maintenance) will be released only if the Court agrees. If you have been declared bankrupt within the last 15 years, you will not be automatically discharged. You will only be able to apply to the Court for a discharge 5 years after the date of your current bankruptcy order; even then the Court may refuse or delay discharge.

What will happen to my pension during Bankruptcy?

People often ask ‘How will bankruptcy affect my pension?’. Pensions, like any other form of income, can be used to repay creditors.

Therefore, your Trustee could claim all or part of your pension – whether you’re receiving it now or are due to receive it in the future.

The Trustee cannot usually claim a pension as an asset providing the pension scheme has been approved by HM Revenue and Customs.

When will Bankruptcy end?

When we talk about Bankruptcy ending, we often refer to discharge periods. When you are discharged from Bankruptcy, you will be freed from most of the debts you owed when the Bankruptcy Order was made, which normally happens within 12 months from when the Bankruptcy Order begins. However, the Official Receiver can apply to the court for a Bankruptcy Restriction Order which means you will continue to be subject to restrictions after discharge on other debts.