Check the rules after you go bankrupt

Summary

The official receiver usually checks what you gave away or sold for up to 5 years before you went bankrupt. For the 2 years before you went bankrupt, the official receiver checks everything you gave away or sold. For 2 to 5 years before you went bankrupt, the official receiver checks what you gave away or sold if either: * you gave away or sold your belongings to someone you know - like a family member, business partner or employee * you gave away or sold something when you couldn’t afford the rest of your debts or your essential payments - called being ‘insolvent’ If the official receiver thinks you deliberately gave away or sold your belongings to avoid paying your debts, they’ll check for longer than 5 years. If they decide you broke the rules, they might take back what you gave away or sold. * took on debts you knew you couldn't repay * made a big pension contribution before you applied for bankruptcy If you ran your own business, the official receiver also checks how you ran it. For example, they check if you: * carried on a business when you knew you couldn't pay your debts - this is called 'trading with knowledge of insolvency' * failed to keep records which show how you’ve.

Key information

• you gave away or sold your belongings to someone you know - like a family member, business partner or employee
• you gave away or sold something when you couldn’t afford the rest of your debts or your essential payments - called being ‘insolvent’
• took on debts you knew you couldn't repay
• gambled or took big risks with money
• spent much more than you needed to
• made a big pension contribution before you applied for bankruptcy
• carried on a business when you knew you couldn't pay your debts - this is called 'trading with knowledge of insolvency'
• failed to keep records which show how you’ve made losses on property or business
• failed to supply goods or services you were paid for - this is called 'taking deposits'
• told a lender something that wasn’t true
• didn’t tell them something they asked you about
• a ‘bankruptcy restrictions order’ (BRO)

Practical guidance

• Source: Check the rules after you go bankrupt

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