If I'm made bankrupt do I lose everything?

When a sequestration order is granted, the court will order that any of your assets (including your home if you own or part own it) are transferred to a trustee.



The trustee's duty is to sell those assets or property and to use the money to pay the costs of managing the bankruptcy and to pay creditors as much as possible of what is owed to them.

Assets are things that you own such as money, savings, property, vehicles, life policies, jewellery and shares. Also any money that you are owed will transfer to the trustee.

During the bankruptcy you must also inform the trustee about any new assets that you acquire, including money or an inheritance.

You will normally be allowed to keep what are termed "essential items" needed for day to day living, such as clothes, furniture, household linens, floor coverings, anything used for cooking or cleaning, educational items and children's toys. You can also keep any tools needed for a trade, up to a value of £1,000.

Items you will normally be allowed to keep if used in your family home include:

Beds, bedding, household linen and curtains

Food, cooking equipment and kitchen utensils

Fridges, freezers, washing machines and microwave ovens

Chairs, settees, tables and other furniture

Lights, fittings and heating appliances

Floor coverings

Articles used for cleaning, drying, mending, or pressing clothes

Articles used for cleaning the house

Articles used for safety in the house

Tools used for maintenance or repair of the house and household articles

Computers and accessory equipment

Radios, telephones and televisions