Questions & Answers
Myth – I will lose my home
Fact – If there is little or no equity in your property, you will not lose it and even if there is, you may be given the opportunity to find someone to purchase that equity, such as a friend or family member. Most landlords are not informed of your bankruptcy unless you have rent arrears.
Myth – I’ll have to stand before a judge in court
Fact – You may need to see a Judge but this will be in his chambers not in a large court room.
Myth – I’ll never get a bank account or credit again
Fact – Several high street banks offer bank accounts to bankrupts and there are other alternatives such as pre-paid debit cards. Your credit rating will be adversely affected but if you are in arrears to your creditors, this will already have happened. You will not be allowed more than £500 of credit during your bankruptcy but once discharged your credit rating can be rebuilt.
Myth – My name will be in the local paper and my neighbours will find out
Fact – Your name will appear in the London Gazette and on the Bankruptcy Register, available online but unless yours was a high profile case, or of public interest it is unlikely to generate any local publicity. Some local papers do publish court listings but this is not as common as it once was.
Myth – My employer will be informed and I will lose my job
Fact – There are very few professions where bankruptcy will affect your job. These are generally limited to professional roles such as Company Directors, Solicitors, Accountants, Estate Agents and Members of Parliament or the FSA. Your employer will not be routinely informed unless you work in one of the affected professions and the only change at work is likely to be your tax code changing to nil unless an Income Payment Order is made.