Clerks and councils are often faced with a dilemma when a councillor or prospective councillor is subject to some form of financial issue generally seen as bankruptcy.

In reality there are different levels of insolvency and it is important to understand the degree of financial difficulty or restriction a candidate is subject to before determining if they can join or remain on a town or parish council.

This guide is for councillors and clerks in helping assess whether a councillor is or has been disqualified from being a Town or Parish Councillor.


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The Legal background

A bankruptcy restriction order/interim bankruptcy restrictions order

A debt relief restrictions order/interim debt relief restrictions order

An individual voluntary arrangement (IVA)

General guidance


This guide is indicative and is not definitive as the situation can and will vary between individuals and their specific situation. Professional advice should always be sought where and when appropriate.


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