Sometimes, there really is no alternative than to hold your hands up and try to start again. Dains realises that this can be a painful process, but we’re here to offer level-headed advice on what can be an emotive process.

It’s important to remember that only individuals can be made bankrupt. Bankruptcy is a formal procedure through the court for an individual who cannot pay their debts to ensure that their assets are realised and distributed fairly amongst the creditors.

Individuals can petition for their own bankruptcy. Alternatively creditors who are owed money can present a petition.

For the period which an individual is bankrupt there are various restrictions which apply.

These include:

  • Not obtaining credit for more than £500 from anyone without disclosing that they are an undischarged bankrupt
  • Not carrying on business under a name different from that under which they were declared bankrupt, without disclosing the fact they are an undischarged bankrupt
  • Not acting as a director of a company or being involved in its management without the consent of the court

The Official Receiver usually administers the bankrupt's estate. However, frequently the Official Receiver appoints a Licensed Insolvency Practitioner, such as Dains, to be Trustee.

The Trustee has a duty to realise the assets, which can include the bankrupt's home. Any property acquired after the making of the bankruptcy order, such as assets left in a will can also be claimed by the Trustee.

Usually the bankrupt is discharged after one year, or it can be earlier if the Official Receiver decides to close his file early. Once discharged the bankrupt is released from their bankruptcy debts and can begin to trade again or become a company director without the above restrictions.

However, it is possible for the bankrupt to have restrictions imposed on them for a period of fifteen years, subject to their conduct.

When it’s time to start again, Dains has the knowledge and experience to deal with the bankruptcy process in a professional and sensitive manner. We’re here to help.



Dains Business Recovery Limited - Registered Company number 10115314. Registered office St John's Court, Wiltell Road, Lichfield WS14 9DS. Registered in England and Wales.

Martin FP Smith and Nicola J Meadows are licensed in the United Kingdom to act as Insolvency Practitioners by the Institute of Chartered Accountants in England and Wales.  Furthermore, they are both bound by the Insolvency Code of Ethics when carrying out all professional work relating to an insolvency appointment.  When acting as Receivers, Administrative Receivers or Administrators they act as agents only, without personal liability and when acting as Administrators, the affairs, business and property of the company are being managed by them.