Taking out more credit, knowing you’ve little chance of repaying it could lead to a bankruptcy restriction order.

The following debts will usually fall outside of bankruptcy

  • Secured Debts A secured creditor (e.g. mortgage company) will usually opt to rely on their security (the property or asset) rather than claim in bankruptcy. However they could claim for any ‘shortfall’ debt where the value of the asset is less than what they are owed.
  • Benefit and Tax Credit over-payments by means of fraud Over payments of benefits and tax credits made before the date of bankruptcy will be included in the bankruptcy and cannot be recovered by other means except in the case of over-payment by means of fraud.
  • Child Maintenance Liabilities from an order made in a family or domestic court, such as CSA claims for child support are outside of bankruptcy.
  • Student Loans Most educational loans would not be discharged in Bankruptcy.
  • Court Fines Court Fines imposed for an offence and liabilities from a confiscation order made under S.1 of the Drug Trafficking Act 1986 or S.71 of the Criminal Justice Act 1988 are outside of bankruptcy.
  • Personal Injury Claims Debts from personal injury claims made against you are outside of bankruptcy.
  • Fraud Debts arising from an act of fraud will not be written off as part of a bankruptcy order.
  • Debts in joint names If you owe debts jointly with someone else, these will still be included in your bankruptcy. The creditor will chase the other party until the entire balance owed is repaid (or otherwise resolved).