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DMBM685030 | Enforcement action: transfers to Enforcement and Insolvency Services (EIS): introduction: impact of insolvency on customers

From HM Revenue & Customs · Debt Management and Banking Manual

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Insolvency has serious consequences for those concerned.

Individuals

  • will have their bank account frozen

  • won’t be able to get credit for more than £500 (and won’t be able to get a mortgage)

  • won’t be able to trade under another name

  • won’t be able to promote, form or manage a limited company

  • won’t be able to be the trustee of a charity or pension fund

  • name will be published in the London / Belfast/ Edinburgh Gazette (as appropriate)

  • customer’s home may be at risk.

Partnerships

  • will be wound up

  • will have their bank accounts frozen

  • will have their assets realised to pay the creditors.

Individual partners will be bankrupted and face the consequences listed for individuals above.

Companies

  • will go into liquidation and the liquidator’s main aim will be to realise the company’s assets to pay its creditors

  • will be dissolved and struck off the Register of Companies

  • with any money left will the money go to its shareholders

  • will have their name published in the London / Belfast / Edinburgh Gazette (as appropriate).

Directors:

  • will have to explain why the business failed

  • could be disqualified from running a company from between 2 and 15 years if found guilty of wrongdoing

  • that have traded with the same or a similar company name without the court’s permission may have all debts incurred become their personal liability.