Bankruptcy

What is bankruptcy?

Bankruptcy is a solution for individuals to rid themselves from overwhelming debt.
A sole trader or individual can file for bankruptcy if there are no illegal dealings, fraud or recklessness.

Bankruptcy proceedings would free you from debts and enable you to make a fresh start, although some restrictions may apply.

The Bankruptcy process can be commenced by either:

A creditors petition to the court
A debtors petition to the court, or
The Supervisor of an IVA(Individual Voluntary Arrangement) petitioning the court;
The Bankruptcy is advertised in the local newspaper and London Gazette and is entered on a register.

Once you are declared bankrupt, the administration would be conducted by either the Official Receiver or a licensed Insolvency Practitioner who will act as Trustee of your estate.

Some assets may not be included in the bankruptcy. These include, amongst others, furniture required for domestic use, a vehicle to enable you to get to work, tools of the trade and your pension.

Your share of the equity in your home would usually be realised and the Trustee has the power to take action to enforce this.

However, all home owners would be kept aware of any intended or commenced actions.
Debts that are not written off when your bankruptcy ends include fines, maintenance and child support payments and other family court orders, debts to secured creditors, such as your mortgage company and other debts arising from personal injury, fraud and other criminal proceedings.

Useful Links
Bankcruptcy
Bankruptcy - Pros & Cons
Bankruptcy Vs Debt Management Plans
Bankruptcy Vs Consolidation
Bankruptcy Vs IVAs
Liquidation
Sequestration (Scotland Only)