Bankruptcy advice

 

If you are having trouble paying your debts, it is important that you take bankruptcy advice as early as possible. Changes to the law of bankruptcy brought in by the Enterprise Act 2002 have meant that culpable or reckless bankrupts are more heavily penalised than other bankrupts. The Enterprise Act reduced the period of bankruptcy to one year; however bankrupts who are found to be reckless could become subject to Bankruptcy Restriction Orders (BROs) or Bankruptcy Restriction Undertakings (BRUs) which could last for up to fifteen years. Failure to take bankruptcy advice as soon as you know you are in financial troubles, and are likely to become unable to pay your debts, could result in you becoming subject to a BRO or BRU.

BROs and BRUs are intended to protect the public from dishonest or reckless bankrupts. An order made by the court will last between two and fifteen years and will restrict what the person subject to a BRO can do. The effects of a BRO are that the ex-bankrupt will not be able to obtain credit over a prescribed limit and will not be able to work in certain professions, for example as a director of a company or an MP.

The effects of bankruptcy are wide ranging and can make it very difficult to run a business. Bankruptcy advice is essential. The amount of credit a bankrupt can get is limited to a prescribed amount, currently £500. If a bankrupt was a partner in a partnership and there was no agreement made as to what would happen if a partner was made bankrupt, that partnership will automatically dissolve.

If you would like to obtain bankruptcy advice, Caven can put you in touch with a local specialist Insolvency Solicitor free of charge. So, if you have any questions or would like our help in finding local Insolvency Solicitors please call us on 08001 221 2299 or complete the web-form above. 

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