Is it just a case of one year as a bankrupt then back to life as normal?

Recent changes in the law to bring sequestration in line with bankruptcy legislation in England and Wales mean that your bankruptcy will normally last for a year. Media coverage around these changes have implied that bankruptcy is now a soft option, but that is not the case.

If you are made bankrupt, it will affect you in many ways and possibly for years to come.

Your credit rating - and therefore your ability to get credit for anything from a TV to a house - will be adversely affected by you being made bankrupt and its likely to remain so for a number of years.

You must tell your bank that you have been made bankrupt which may lead to your account being frozen or closed (any savings will be transferred to your trustee). Your bank may still allow you to have your wages or benefits paid into an account.

Utility companies - gas, electricity, phone and so on - may no longer allow you to pay bills as before. Instead you may be required to have a meter installed or to set up a pre-payment plan.

Your bankruptcy will also be a matter of public record and friends, family and your employer may find out about it even if you do not tell them yourself.

Details of your bankruptcy will remain on the Register of Insolvencies until one year after your trustee has completed their duties.

Your will trustee will advertise your bankruptcy in a publication called the Edinburgh Gazette. This is an official publication that is used to inform creditors and credit agencies that you have been made bankrupt and is also available to the general public via the internet.