What is bankruptcy?
Bankruptcy is an option for individuals only. However, this does include individuals who have a business which trades in their name or are in a partnership.
A sole trader or individual
can file for bankruptcy if there
are no illegal dealings, fraud or recklessness. In
some instances they can be discharged from bankruptcy
within one year.
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 creditor’s
petition to the court;
a debtor’s petition to the
court; or
the Supervisor of an 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. |
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We understand
that you may require guidance and encouragement to
help you through these difficult times.
Useful Links - Guides to
bankruptcy:
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