WHAT HAPPENS IF I DON’T ANNUL MY BANKRUPTCY?

Usually, be automatically discharged from your bankruptcy 1 year after the bankruptcy order was made against you.

SPEAK TO A BANKRUPTCY EXPERT TODAY

WHAT HAPPENS IF I DON’T ANNUL MY BANKRUPTCY?

Usually, be automatically discharged from your bankruptcy 1 year after the bankruptcy order was made against you.

SPEAK TO A BANKRUPTCY EXPERT TODAY

Unless you fail to cooperate with the Official Receiver or the Trustee in Bankruptcy, which usually means that you fail to provide them with information about your assets and liabilities in a timely manner, then you will usually be automatically discharged from your bankruptcy 1 year after the bankruptcy order was made against you.

This means that after one year in bankruptcy you will no longer be subject to the restrictions of your bankruptcy. You can find out further information about the most common restrictions on the Why Should I Annul My Bankruptcy Page.

However just because you are discharged from bankruptcy does not mean that you are free from your trustee in bankruptcy. Your trustee will continue to try to sell any assets that you might have in order to clear all of your creditors.

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Unless you fail to cooperate with the Official Receiver or the Trustee in Bankruptcy, which usually means that you fail to provide them with information about your assets and liabilities in a timely manner, then you will usually be automatically discharged from your bankruptcy 1 year after the bankruptcy order was made against you.

This means that after one year in bankruptcy you will no longer be subject to the restrictions of your bankruptcy. You can find out further information about the most common restrictions on the Why Should I Annul My Bankruptcy Page.

However just because you are discharged from bankruptcy does not mean that you are free from your trustee in bankruptcy. Your trustee will continue to try to sell any assets that you might have in order to clear all of your creditors.

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In respect of your home, your trustee in bankruptcy has 3 years from the date that the bankruptcy order was made against you in order to sell your home.

In practice, it is very rare for a trustee or the Official Receiver to sell your home during the first 12 months of the bankruptcy, they are much more likely to apply for an order from the Court to sell your home during the 2nd and 3rd years after your bankruptcy.

If the Official Receiver or your Trustee in bankruptcy does not apply to sell your home during the 3 years beginning with the date on which you were made bankrupt, then your home is yours once more and the trustee in bankruptcy will not be able to sell it.

In respect of your home, your trustee in bankruptcy has 3 years from the date that the bankruptcy order was made against you in order to sell your home.

In practice, it is very rare for a trustee or the Official Receiver to sell your home during the first 12 months of the bankruptcy, they are much more likely to apply for an order from the Court to sell your home during the 2nd and 3rd years after your bankruptcy.

If the Official Receiver or your Trustee in bankruptcy does not apply to sell your home during the 3 years beginning with the date on which you were made bankrupt, then your home is yours once more and the trustee in bankruptcy will not be able to sell it.

Aside from the loss of your home, you may also find that – if you do not apply to annul your bankruptcy:

You will find it very difficult to obtain credit in the future as you will have to declare the fact that you have been made bankrupt previously;

Any credit that you are offered will likely be more expensive because lenders will perceive you to be of higher risk to them when compared with those who have not faced insolvency;

Your credit file will remain marked with bankruptcy, and thus your credit score will be low;

You will not be able to sell your home until 3 years after the date on which your bankruptcy order was made, because the Official Receiver will have placed bankruptcy restrictions on the register of title, preventing you from selling the property without sharing the proceeds with your creditors.

As such, if you have more assets than you do liabilities, it is usually a good idea to apply to annul your bankruptcy.

Aside from the loss of your home, you may also find that – if you do not apply to annul your bankruptcy:

You will find it very difficult to obtain credit in the future as you will have to declare the fact that you have been made bankrupt previously;

Any credit that you are offered will likely be more expensive because lenders will perceive you to be of higher risk to them when compared with those who have not faced insolvency;

Your credit file will remain marked with bankruptcy, and thus your credit score will be low;

You will not be able to sell your home until 3 years after the date on which your bankruptcy order was made, because the Official Receiver will have placed bankruptcy restrictions on the register of title, preventing you from selling the property without sharing the proceeds with your creditors.

As such, if you have more assets than you do liabilities, it is usually a good idea to apply to annul your bankruptcy.

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