Bankruptcy

Bankruptcy is one way of dealing with debts you cannot pay.
The bankruptcy proceedings: free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and make sure your assets are shared out fairly among your creditors.

Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.

An individual can be made bankrupt either in one of three ways:

Voluntarily - By the debtor themselves.

Involuntarily - By the creditor owed money (£750 Minimum).

The supervisor or anyone bound by an IVA

A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor's claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order is made is both difficult and expensive.