Could you get bankrupt right after getting a loan?

Could you get bankrupt right after getting a loan?

Individuals often ask should they can get bankrupt after borrowing cash recently. Yes you are able to: you may be entitled to get bankrupt because it seems you have “behaved badly” if you cannot repay your debts – bankruptcy won’t be refused. Nevertheless, so you need to know about these as they could mean you decide either not to go bankrupt or to postpone it if you have recently borrowed money, there may be consequences depending on your situation.

Potential issues

You can find three types of feasible consequences in the event that you get bankrupt immediately after borrowing cash:

  • a prosecution for fraudulence. This could make you having a criminal background and the fraudulent loan wouldn’t be damaged by the bankruptcy. It’s just apt to be considered if the proof shows significant and deception that is deliberate.
  • a Bankruptcy Restriction Order (BRO). Then you may get a BRO if the Official Receiver (OR) decides your borrowing was reckless, for example you knew you were going to have to go bankrupt or used the money for gambling. A BRO imposes different limitation you can’t become a company director, these are detailed here on you,for example. Continue reading “Could you get bankrupt right after getting a loan?”