About Bankruptcy Bankruptcy is one way of dealing with debts that cannot be paid and is a possible alternative to other debt solutions such as debt management and IVA. In most cases, becoming bankrupt is considered as a last resort solution as there are many implications and disadvantages: What are the implications of bankruptcy for the client? The announcement of bankruptcy is advertised in the local press Loss of ownership of all assets such as their home, car etc Full investigation into the client’s circumstances by the Official Receiver Unable to obtain any further credit Closure of bank accounts and freezing of all credit accounts Unable to act as a company director. unable take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court. Unable to trade in any business under any other name unless all persons concerned are informed of the bankruptcy. Unable to practice as a Charted Accountant / Lawyer. Unable to act as a Justice of the peace (JP). Unable to become an member of parliament. Unable to become a member of a local authority.