What happens when bankruptcy finishes?

Bankruptcy / Guide

When you successfully come to the end of your bankruptcy, you’ll be officially discharged. That means the bankruptcy restrictions are usually removed and you're released from the debts you owed when your bankruptcy order was made. In most cases, this will happen automatically, even if you're still making contributions.

Will bankruptcy affect my employment?

Bankruptcy can stop you doing certain jobs, such as finance, security and certain public services areas like the army or police, and may affect if you can be a member of some professional or licensing bodies.

You cannot act as a company director whilst you are going through your bankruptcy, but once you've been discharged, you can be involved in managing a limited company, or act as a director of one - unless you're subject to a bankruptcy restrictions order or disqualification order.

Certain employers may ask you to declare whether you’ve ever been bankrupt on a job application form, so your bankruptcy may continue to affect your employment prospects, even after it’s finished.

What about borrowing money?

Restrictions are imposed on borrowing whilst you are bankrupt and any further borrowing that is approved will require you to tell any potential lender about your bankruptcy. Once you have been discharged, you will no longer have to declare your bankruptcy unless you are asked – some credit applications, for example, specifically request this.

Your bankruptcy will be recorded on your credit report for six years from the date it starts, so this can make it more difficult to borrow money and you may be subject to higher rates of interest.

Bankruptcy may also have an impact on tenancy agreements and other contracts, such as satellite TV subscriptions and mobile phone contracts.

If you have any more questions about bankruptcy, speak to an advisor and they’ll be able to help you further.

Next: Alternatives to Bankruptcy

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