Discussions on life after your bankruptcy discharge.

Moderators: TalbotWoods, JaneClack

By On-the-up
#61588 I am aware that you cannot be a Director of a limited company DURING bankruptcy but are there any restrictions once discharged?
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By TalbotWoods
#61591 None, unless a BRO is in place

Tim
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By Nicky
#61595 errmm..I think the implications is that you still are not permitted to be a company director until 3 years after you initially went bankrupt even tho you may be discharged after a year or less.

??
By On-the-up
#61599 Hmmm somewhat conflictling answers there.

Ross
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By TalbotWoods
#61602 Checkin the tech manual now!

Tim
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By Nicky
#61604 Yeh, would be confusing - I don't know why I have that in the back of my head could be wrong but TW knows the places to check tho, so dont worry ;)
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By TalbotWoods
#61606 The Tech Manual states:

COMPANY DIRECTORS DISQUALIFICATION ACT 1986

Promotion, formation and management of a company

25.14EA


It is an offence for an undischarged bankrupt to act as a director of, or directly or indirectly take part in or be concerned in the promotion, formation or management of a company, except with the leave of court. EA 2002 extends this prohibition to include a discharged bankrupt who is the subject of a BRO.


So I read this as once you are discharge you are OK UNLESS a BRO is in place.

Tim
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By Nicky
#61612 hmmm....Bankrutpcy discharge used to be after 3 years, but since it was changed to 1 year in 2004, I was under the impression that being a company director was still a 3 year condition, the same as if you have an IPO.

I'm doing a bit of asking around as well.
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By Nicky
#61623 Ok, it would seem.... That you are allowed to be a company director after discharge, however, there is risk to any assets you gain within a 3 year period from when you went bankrupt as the OR will still have any claim on your assets.

Plus, if you pay an IPO, this is still payable 3 years from when you went bankrupt, therefore, if you have an increase in income, this will increase the amount you pay into your IPO.

Basically, becoming a Company Director after you have been discharged does mean that any assets you gain are at risk within that 3 year time period.

Perhaps thats where my confusion came in.
By On-the-up
#61631 Understood - thanks

My particular situation means that the OR cleared my case on the marital home equity, so the debt has been satisfied. My ex decided to offer full settlement from the money rather than lose the house - so she paid in the end lol!

Ross
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By Nicky
#61641 Does that mean your bankruptcy was nullified?
By On-the-up
#61644 As I understand it - offers have been made to and accepted by all creditors so I assume that's the matter at an end?

Ross
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By Nicky
#61652 If the bankruptcy is nullified, then that is that anyway - so nothing to worry about.
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By Ransid
#61670 Nooooooo! Payment of all the debts doesn't make the bankruptcy go away.

You will still be subject to all the restrictions not withstanding that you may have no creditors left. And your credit file will still show it for 6 years etc.

you should take some advice about whether you can now apply for an
annulment of the bankruptcy order on the grounds that all your debts and the expenses of the bankruptcy have been paid in full (section 282 of the Insolvency Act 1986 and Rules 6.206 to 6.214 of the Insolvency Rules 1986)

Also look at the OR's leaflet here
The link is here

Definitely a step worth taking in my view - the benefits are large, but it may cost you a bit extra to get it (unless you can work your way through the rules - it's legalise but not that difficult to follow, especially if you have proof of payment)

re :- restrictions - these indeed lift on discharge

re :- after acquired property for 3 years - this is a whole other argument/discussion (the jury's out in my mind!)