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.

Key considerations in Bankruptcy 

  • Creditors may sometimes feel that a bankrupt has not made a full disclosure of their assets, or they would like to see an in-depth investigation carried out into the bankrupt’s financial affairs where they consider matters require further examination.  Opus’ personal insolvency experts can help in such circumstances, by drawing on many years of knowledge and experience investigating the affairs of insolvent individuals.
  • Alternatively, you may have been made bankrupt yourself, or have substantial personal debts which you cannot repay (such as personal guarantees for a limited company), or are looking for a solution to avoid bankruptcy, by making a proposal for an Individual Voluntary Arrangement (“IVA”).  An IVA enables a proportion of debts to be paid, with the agreement of creditors, and with the balance written off.

If you have any concerns about a bankruptcy, would like an investigation conducted, or wish to discuss whether an IVA might be a feasible option in your particular circumstances, please call our Personal Insolvency Partner, Paul Mallatratt on 0115 666 8232 or 07736 972395 or complete the form below for a no-obligatory chat and he will be happy to discuss matters further.

Let’s Talk

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.

Alternatively, book a convenient time for us to contact you