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Confirming what assets you have

When you are made bankrupt, control over your assets and any spare income passes to your trustee. This is the person appointed to manage your bankruptcy; selling your assets and making payments to your creditors (people you owe money to).

Within two weeks of being declared bankrupt, the Official Receiver (an officer of the bankruptcy court) will interview you. You will be asked to provide information about your debts, assets and income. This information will help the Official Receiver:

• confirm what debts can be included in your bankruptcy
• work out the total value of your bankruptcy debts
• work out the value of your assets

• Bankruptcy - the role of the Official Receiver

• Contact your local Official Receiver

Dealing with debts not included in your bankruptcy

Your trustee can confirm if any of your debts can’t be included in your bankruptcy, usually thinsg like:

• court fines
• child maintenance payments
• certain state benefits you have been asked to repay
• student loans

It is your responsibility to pay these debts and failure to do so can lead to court action. Organisations like Citizens Advice and the National Debtline can help you find ways to deal with the debts not included in your bankruptcy.

• Dealing with debt problems - a guide

• Debt - where to get free help and advice

Selling your assets to pay your bankruptcy debts

Your trustee will organise a sale of your assets and share out any money raised between your creditors.

The court will cancel your bankruptcy if the sale of your assets raises enough money to pay all your bankruptcy debts. Any money left over from the sale of your assets will be returned to you.

If the money raised is not enough to pay all your bankruptcy debts, your trustee will split what is available between your creditors. You will be discharged (freed) from the debts when your bankruptcy period comes to an end. However, if you can afford it, you might have to make regular monthly payments from your spare income (like wages) for three years towards your bankruptcy debts.

• Bankruptcy - how it affects you

• Bankruptcy - how and when it can end

Making monthly payments towards your bankruptcy debts

If your assets aren’t enough to pay your bankruptcy debts, you might have to make monthly payments from your spare income. This arrangement lasts for three years.

Your trustee will need details about your income and expenses, including your partner’s or any family members who depend on you. This information will help your trustee decide:

• if you can afford monthly payments
• how much the payments will be
• how many payments you will make

Your trustee will try to reach an agreement with you about your monthly payments. This type of plan is called an Income Payments Agreement (IPA). If you can’t reach an agreement, your trustee will ask the court to order you to make monthly payments. This type of plan is called an Income Payments Order (IPO). You should get legal advice if you are taken to court.

How much are you likely to pay?

Any spare income over £20 per month can be used to pay the IPO/IPA. The actual amount will depend on how much you can afford after essential expenses like food and bills are paid.

Payments are unlikely if state benefits are your main source of income or you have less than £20 a month in spare income.

The amount you pay can be changed or stopped if your financial situation changes. For example, you inherit money or lose your job. You must keep up the payments or face court action.

More useful links

• Find a solicitor or advice agency

• Mortgage arrears or payment difficulties

Useful contacts

• Money, tax and benefits contacts