If you are a homeowner and there is equity in your property, your home would be seized by the court. You would normally be given around six months to find somewhere else to live.

If you own a vehicle that is not on HP and is worth more than £1500, it would be taken by the court. If you can demonstrate that you need a car to get to work, you would be given £1500 to purchase a new one. Any further vehicles which are deemed unnecessary would be taken and no money given in return.

Certain jobs cannot be carried out by somebody who is bankrupt. These include: Company Director; a member of the Police Force or Military; members of the Accountancy and Legal professions; certain positions involving the handling of money or security clearance.

When you are declared bankrupt, a notice of this fact is published in your local newspaper and the London Gazette. It appears under bankruptcy listings for one week and some people are concerned of the stigma this involves.

Bankrupt people are only allowed to use something called a 'Basic Account', which does not have full facilities such as a cheque book or overdraft. You will still be able to receive money, set up direct debits and so on, but you will probably find yourself being forced to deal primarily in cash.