Bankruptcy
The Official Receiver (“OR”) is an Officer of the Court or a Civil Servant working on behalf of the Insolvency Service. The OR deals with notices from the Courts of individuals going into Bankruptcy and is responsible for dealing with the administration usually in the first stages but may be involved in the whole process in some cases.
The OR and dealing with the Bankruptcy
Once an individual is declared Bankrupt, the OR is responsible for ensuring that the debtor’s assets and records are protected.
Your responsibilities if you are been made Bankrupt.
At the Bankruptcy hearing, the debtor is adjudged bankrupt and the OR is appointed by the Court to investigate the circumstances around the insolvency and deal with the debtor’s assets and liabilities.
You will be asked by the OR to attend an interview and a lengthy questionnaire will be required to be completed prior to the interview.
It is your responsibility at the interview to provide:-
- All bank accounts, statements (3 years prior to the Bankruptcy) and any records and paperwork in your possession pertaining to your debts
- Full details of your assets and liabilities
- The completed questionnaire
- Inform the OR if anyone else holds any of your records or assets
It is imperative to cooperate with the OR. The consequences for failure to do so may result
in a Bankruptcy Restriction Order (BRO) being issued and worst case scenario, face prosecution or have a warrant issued for arrest.
The OR is responsible for ascertaining the whereabouts of all your assets and arrange for these to be valued independently and then sold. The proceeds of the assets are then distributed equitably among creditors.
Conduct of the Debtor
When you are made Bankrupt, the OR takes on an investigative role and interviews you to identify the factors that led to the Bankruptcy. The OR has to ensure that there was no fraudulent activity or instances of misconduct by the debtor that has caused the bankruptcy to occur. The debtor has a duty of responsibility and can be penalised if they knowingly caused financial loss in the Bankruptcy by accruing debt (knowing that bankruptcy was imminent/on the cards).
What you can and cannot do after Bankruptcy
After you are made Bankrupt, you cannot act as a Company Director, act in the management of any businesses, re-use the company name or obtain credit of up to £500 (without informing the person you are seeking credit from that you are Bankrupt), trade in any other name other than the one you were made bankrupt in.
The OR’s responsibilities and duties in Bankruptcy are wide-ranging but investigating the actions of the debtor is one of their main roles.
Next Steps
If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com
This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.
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