A bankruptcy offence is a form of wrongdoing written in insolvency law.
Your behaviour before and after the bankruptcy order is made can lead to legal proceedings against you if that behaviour constitutes a bankruptcy offence.
Following the making of a bankruptcy order, your affairs will be investigated. This investigation and your conduct throughout the bankruptcy will be used to determine if a bankruptcy offence has been committed.
What is the punishment for a bankruptcy offence in the UK?
Under the law of England and Wales, any person guilty of a bankruptcy offence is liable to imprisonment, a fine or both. A sentence of up to seven years can be made in some instances.
This area of bankruptcy demonstrates why bankruptcy advice is so important, even if bankruptcy is your only option.
What type of behaviour leads to bankruptcy offences?
The following list includes some wrongdoings that may lead to a bankruptcy offence. There are others.
- Fraudulent activity
- Not disclosing property
- Not disclosing property disposals
- Falsifying documents or statements
- Concealment of property, books, papers
- Contravening certain bankruptcy restrictions
What action can I take?
Bankruptcy offences are severe and cannot be written into a website. Ultimately, your defence will determine the outcome of any proceedings. You will not be guilty of most bankruptcy offences if you can prove that you had no intent to defraud or conceal your affairs.
If you think you may be guilty of a bankruptcy offence, legal advice is necessary.