If you are going through an insolvency procedure, you will hear a lot about bankruptcy records.
There are records you will have to produce, those that the official receiver will have to make and those that the trustee will have to keep. This page explains some of the bankruptcy records and their purpose.
Your records
Under the Insolvency Act, the official receiver must investigate your affairs leading to bankruptcy. As such, they will need to ascertain certain information. From the date of the bankruptcy order, you must deliver all books, papers, and other records related to your estate and affairs in your possession or control. Furthermore, the official receiver will have a copy of your statement of affairs or request one from you. It will also form part of their bankruptcy records.
The official receiver will typically request these records, and you may be guilty of contempt in court if you fail to deliver them without a reasonable excuse. The records will usually include, but are not limited to, documents about possessions, financial transactions and your business.
Records relating to you but held by others can also be requested during the bankruptcy. The official receiver can apply for a court order to summon others to deliver them. Therefore, if applicable, the official receiver will seek to establish the whereabouts of the information relating to your possessions and affairs held by others.
Please note: If you deliver your records to the insolvency office, get a delivery receipt.
What records am I required to keep?
The records you are required to keep will depend on the type of business you operate, whether it is a partnership or whether you employ staff. At a minimum, you are required by law to keep any information and documents you may need to help you fill in your tax return or make a claim.
For bankruptcy, you may be subject to a bankruptcy restrictions order if you fail to keep records which account for any loss of property by you or any business carried on by you in the period beginning two years before the presentation of the petition and ending with the date of the application for a bankruptcy restriction order. You may also be subject to a bankruptcy restriction order for neglect of business affairs.
If you feel that you could fall short of the record-keeping requirements laid upon you by law, then you should establish how you may be affected by speaking to a professional adviser.
The official receiver’s bankruptcy records
After you have petitioned for your bankruptcy and before receipt of your statement of affairs, the official receiver may require information allowing the following information to be entered into your bankruptcy records:
- Your contact details
- current trading status
- whether there are any assets at risk
- whether there are any matters requiring immediate attention. An example would be legal action
- bank details
When the official receiver receives your statement of affairs, they will then categorise you as either:
- Type 0 case;
- Type 1 case; or
- Type 2 case
This type of case determines the information the official receiver will require for your bankruptcy records. If you are classed as type 0, then the official receiver thinks that no further information is needed and that no interview is necessary. If you are classed as type 1 then the official receiver will require more information from you and a telephone interview will be likely. Type 2 cases are necessary where significant inquiries must be made due to complexities, and a face-to-face interview is more likely.
The official receiver will initiate a case assessment record, which will be used to record important events and decisions concerning a case.
Records of court papers, statutory notices, correspondence, and information relating to assets will also be kept will also be maintained.
Where is a record of my bankruptcy kept?
A record of your bankruptcy will be kept on the bankruptcy register until three months after you are discharged. A record will also exist in the London Gazette as the official receiver administering your bankruptcy is required to advertise your bankruptcy there, possibly the local newspaper.
The London Gazette is an official newspaper of the Crown, and in many cases, its notices are statutory and used in legal proceedings. It contains many official notices, including corporate insolvency and personal bankruptcies. Hence, Credit Managers and other professionals widely use the London Gazette.
Credit Reference Agencies will usually pick up on your bankruptcy. A bankruptcy order will appear on your credit report for at least six years from the date of bankruptcy and longer if the bankruptcy extends beyond this period. Even after discharge, the note will remain on the file, though you may wish to request that the credit reference agency add a notice of discharge to your file. A Bankruptcy restriction undertaking or a bankruptcy restriction order will stay on your credit file until it ends.