Will I lose my assets if I take up Bankruptcy
As one of the most extreme debt solutions available to debtors, bankruptcy is by no means a free pass to solvency. A bankrupt's obligation to repay debts is only dissolved after the Official Receiver, who is an officer of the court, seizes all relevant assets on behalf of creditors.
The order in which creditors are repaid is of little relevance to bankrupts, but that personal assets will be seized and sold is obviously significant. Not all assets belonging to a bankrupt will be seized, however, so debtors should not expect the Official Receiver to leave them with no personal possessions.
The Official Receiver will seize ownership of any equity in a house, even if the property is jointly owned (the Official Receiver will take the bankrupt's share and usually force a sale). A bankrupt's car is also likely to be sold if it is worth £2,500 or more, but if the car is used for work or compelling personal reasons, concessions could be made. Other possessions of (unreasonable) value could also be sold.