What is Bankruptcy?
Bankruptcy is designed to relieve a person from overwhelming debt and to enable a “fresh start”
The bankrupt’s assets are got in and realised by the Trustee, for the benefit of the creditors and distributions from the realisations of those assets, are made to creditors.
Bankruptcy is an Order of the Court, where either a creditor has presented a bankruptcy petition against you, or an Adjudication is made by the Official Receiver, where a debtor has made their own application for bankruptcy.
Once a Bankruptcy Order is made, that person’s assets automatically “vest” in (or belong to) the Trustee in bankruptcy, who initially is usually the Official Receiver. An Insolvency Practitioner may then be appointed as Trustee, in place of the Official Receiver, at the request of a majority of the creditors.
For more information on an IVA, we offer an initial free consultation to review the situation and make recommendations on the best way forward. If we think that an IVA is the best route forward, our specialists can support you at every step of the way through the process. For a no obligation chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.
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