It is unquestionably a difficult situation for anyone who is facing a criminal bankruptcy order. This article may help you to get an overview on criminal bankruptcy orders.
What are criminal bankruptcy orders and the procedures?
Criminal bankruptcy order was first introduced under the Powers of Criminal Court Act in 1973. This act states that a Crown Court can make a criminal bankruptcy order against a dishonest person who has caused loss or damage to one or more people.
In such a situation, the Director of Public Prosecutions (The Official Petitioner) or the sufferer presents a bankruptcy petition in the Crown Court. The court orders “criminal bankruptcy” proceedings depending on validity of the petition. However, the sufferers of the offence must prove all the claims they have made.
The proceedings of Criminal bankruptcy order starts after the police verification or investigations by senior officers. Nevertheless the Inland Revenue or HM Customs & Excise can also get into investigation.
A criminal order will be made if the person concerned is found guilty of one or more related offences. But if the person is already facing charges of compensation order then the criminal bankruptcy order cannot be charged against him.
If a person is prosecuted with criminal bankruptcy then the court may charge a heavy penalty or imprisonment (up to 7 years). He will also get a criminal bankruptcy order that will state the following:
- The amount of financial damage that has been caused as a result of the offence. It will also state if the convicted has committed more than one offence.
- Names of people (appeared in front of the court) who have suffered a damage or loss as a result of this offence
- Specification of loss or damage that each has suffered because of the offence committed.
- The relevant dates (first offence and recovery dates)
A criminal bankruptcy order can be made against more than one offender. Although there are no provisions for making up a joint bankruptcy petition on this order, the same order will act as a bankruptcy petition against each offender.
Consequences of Criminal Bankruptcy Order:
It is needless to say that a person charged with sentences of imprisonment and hefty penalty will have a difficult time recovering from it. They are not automatically discharged from bankruptcy. And to add to their misery, they can only apply to the court for a discharge after 5 years of bankruptcy order.
