Annex B

Once a Bankruptcy Order has been made against an individual he will be subject to the following restrictions under the Insolvency Act 1986 and the Company Directors Disqualification Act 1986 (CDDA):

1. Prohibited from acting as a director of a company, or to directly or indirectly take part in or be concerned in the promotion, formation or management of a company.

2. Prohibited from obtaining credit over £250 without disclosing his status.

3. Prohibited from using a trading style other than the name in which he was adjudged bankrupt, unless he discloses the name under which he was adjudged bankrupt.

4. Prohibited from acting as a receiver or manager of a company’s property on behalf of a debenture holder (England & Wales).

5. Prohibited from acting as a receiver (Scotland).

6. Disqualified from acting as an insolvency practitioner.

7. Disqualified from sitting or voting in the House of Lords.

8. Disqualified from being elected to, or sitting or voting in, the House of Commons.

9. Prohibited from sitting or voting in a committee of either House.

A bankrupt who, without leave of the court, acts as a company director or who is concerned in the promotion, formation or management of a company commits an offence. On conviction he is liable to face, on indictment, a term of imprisonment not exceeding 2 years and/or a fine or both, and, if tried by a Magistrates Court, a term of imprisonment not exceeding 6 months or a fine not exceeding the statutory maximum. The same penalties apply to bankrupts who act as receiver or manager (England & Wales), as a receiver (Scotland) or who obtain creditor or engage in business without disclosing their status/the name under which they were adjudged bankrupt.

Other Restrictions

In addition to the prohibitions contained in the Insolvency Act 1986, a bankrupt is disqualified from holding certain positions/offices as a result of restrictions contained in other, legislation, the most notable of which are:

1. Disqualified from acting as a local government councillor

2. Disqualified from being the trustee of any trust scheme

3. Disqualified from acting trustee of a charity (unless the Court grants leave)

4. On the making of a Bankruptcy Order a solicitor’s practising certificate will be suspended (suspension may be lifted on application to the Law Society)

5. Disqualified from engaging in estate agency work (except as an employee)

6. Disqualified from holding office as a school governor

7. Disqualified from being appointed or acting as a justice of the peace

8. Not permitted to be a member of any local rating valuation panel

 

This list is not exhaustive and there are more obscure provisions. For example a bankrupt may not be a member of a regional local land drainage committee.