Bankruptcy Offences

The end of one-year term of bankruptcy will definitely free you of your debts, but the period imposes lots of restrictions and regulations that can be really risky and painful if you fail to adhere to it. The rules are actually imposed in your interest to safeguard against any involvement in further debts or complications. The number of regulations that the court draws upon a bankrupt person that he needs to follow during the period of his bankruptcy are the ‘bankruptcy restrictions’ and failure to adhere to them is an offence. This article details the various regulations and the linked offence that one needs to know during their bankruptcy period.

Bankruptcy Offences
The first and foremost regulation is that the debtor should not indulge in borrowing amount greater than £500 without letting the creditor know about his bankruptcy. Failure to inform the creditor about your bankruptcy is an offence as per the bankruptcy laws. During your bankruptcy, you should not take up position as director of a company or involve in any responsibility concerning a company’s promotion. Such acts without informing the court are regarded as a punishable offence by law. It is also one of the regulations that you are bound to inform anyone who does business with you about your bankrupt financial situation. It is also an offence to involve in any business with a name that is different from the name with which you had filed bankruptcy. The court also levies a rule which prohibits you from working as an insolvency practitioner towards other bankruptcy cases during your bankruptcy term. These are certain rules that are treated as an offence by the bankruptcy law. The lack of adherence to any of these rules might even lead to criminal charges. You can always resort to professional advice in case of any clarifications on these offences.

Bankruptcy Responsibilities
There are also some responsibilities that come along with the bankruptcy process and failure to fulfil them also becomes a hindrance at times for the smooth ending of the bankruptcy process. The most basic and important of them is that you provide complete co-operation to your appointed official receiver and disclose all debts and assets you possess in a genuine manner. Your co-operation in his work will help speed up your bankruptcy discharge process.

Bankruptcy Restriction Orders
In certain cases where the official receiver feels that you have exhibited dishonesty with him or unfit conduct under any circumstances, he can recommend the court to issue a bankruptcy restriction order against you. This restriction order is an extended term of bankruptcy restrictions and regulations that is imposed on you. The order normally extends for duration of about 2 to 15 years. The details of the order is normally published publically and also listed in the online insolvency register. The insolvency register is a searchable online database that is available through the site www.insolvency.gov.uk. The database lists the details of the bankrupt person which includes his name, address, date of birth and reason for issue of bankruptcy restrictions order. Breaking of the bankruptcy restrictions order is again a punishable offence.

Reasons for issue of Bankruptcy Restrictions Order
The two major reasons for issue of bankruptcy restrictions order are employment of dishonest means and unfit conduct. The various types of dishonest behaviour and unfit conduct can be
Improper account keeping for almost up to 2 years before bankruptcy
Involvement in Gambling
Credit borrowing in spite of knowing your ability to repay
Giving assets to others to save them from being listed as a fund source during bankruptcy
Preference of some creditors over the others
Non Co-operation with the official receiver
Lack of genuine-ness while declaring properties and assets

The offences that are detailed for bankruptcy further extend in case of bankruptcy restriction order till the order is valid. As like bankruptcy conditions, here also you will not be able to borrow credit greater than £ 500 without informing the creditor of your bankruptcy condition. You should not involve in any company in its promotion or take position as a director during your bankruptcy tenure. You will also not be eligible to become the MP of local councillor during the period of bankruptcy restrictions crowd.

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