Bankruptcy And Bailiffs

When you are made bankrupt, most non-essential items belonging to the bankrupt individual or company valued over approximately £1,000 may be used by the Official Receiver to pay creditors. However, items such as jewellery, artwork, and heirlooms, which hold significant sentimental importance, are protected and excluded.

If a bailiff has removed goods or taken money from a bankrupt debtor, then the bailiff must deliver them up to the official receiver, and all debts bailiffs are enforcing must be transferred to the Receiver because bailiffs may no longer take enforcement action, including taking a money transfer from a bankrupt debtor.

The law stops creditors from trying to enforce their debt before the debtor becomes bankrupt, and all creditors join a queue and are paid in a specific order of priority according to their status. Some creditors may receive nothing at all.

Should bailiffs continue to harass you during your bankruptcy, you must give the bailiff's details to the Official Receiver, who will intervene and handle the situation on your behalf.

All the debts you have included in your PIQB Form (the Preliminary Information Questionnaire for Bankruptcy) will be administrated by your Trustee in bankruptcy. Typically, this means you will no longer be liable for these debts after one year.

The relationship between bailiff enforcement and bankruptcy is clearly defined in Section 184 of the Insolvency Act 1986. This section states that bailiffs must hand over controlled goods and any money they have taken to your Trustee in bankruptcy.

Assets held in trust for at least three years before the application date are excluded from your bankruptcy estate and cannot be used to pay debts as these are protected by the Insolvency Act 1986.

If you expect to receive an inheritance or legacy during your bankruptcy, you must ask the testator to amend their Will or make an addendum to place your inheritance into a trust temporarily. If the testator survives, the amendment or codicil can be revoked once you are discharged from bankruptcy.

Some types of debts enforced by bailiffs cannot be discharged in bankruptcy, including child support arrears, student loans, and magistrates' court fines. The Official Receiver must ensure you have sufficient income to pay them.