If you’re thinking about going bankrupt,
seek legal advice before you do. There are consequences of bankruptcy. It extends for
3 years, so during that time you’re not allowed to own assets in your own name. Any income that you earn will be paid to the
trustee. You’re allowed to own assets and income to a certain value. It’s not much,
so things like tools of trade if you’re a tradesman, some personal and household items
and you’re allowed to an income up to certain value but other than that, pretty much everything
else goes to the trustee. For the 3 years that you are bankrupt, you won’t be able
to be director of a company, own a business, you won’t be able to acquire assets, buy
a house, anything of that nature. If you’re gifted an asset, someone gives you property,
that will vest in the trustee as well. For the 3 years you’re bankrupt, you won’t
have a lot to your name. And after bankruptcy, after you’re being declared bankrupt, a
note about your bankruptcy is included on a national personal insolvency index and that
means any future creditor can search to see if your name is listed as a default bankrupt,
so you will show up on a credit check. Every time you apply to increase the value in your
credit card, if you apply for a home loan, if you apply to buy a large screen TV from
a furniture company and you want to apply for some credit, it will show up and it will
probably affect ability to get credit for a lot of things.