What does bankruptcy mean?

By THIS IS MONEY
Updated:

 

MY wife and I launched our own business nearly three years ago and over this period have accumulated personal and credit card debts of £80,000. Since last year business has gone downhill and we are on the verge of winding up the company. We would like to know what happens if we go bankrupt. A, Chichester.

Gill Hankey of the Bankruptcy Advisery Service says: You will both be personally responsible for the debts. If Bankruptcy Orders are made against you, your assets will vest in the Official Receiver or Trustee in Bankruptcy. You will be subject to the standard restrictions of bankruptcy - that is, you could not be MPs, JPs, directors of a limited company or school governors.

Credit would be restricted to £250 from any one source and you could well find you could only obtain basic banking facilities. You would be bankrupt for three years during which time these restrictions would apply.

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