The term ‘bankruptcy’ applies to individuals and not to companies and individuals are often declared bankrupt when their unincorporated business has failed.
It is the judicial process used where debtors are unable to pay debts as and when they arise, or even in the foreseeable future. On the other hand, it may be where there will soon be a liability falling due which the debtor will be unable to meet. If you find yourself to be in any of these situations, bankruptcy may be a viable option for you to consider.
You can either make an application for your own bankruptcy or one of your creditors have the power to initiate bankruptcy proceedings against you if they are unable to recover their money. However, for a creditor to make you bankrupt you must owe a minimum of £5000.00.
As debt management specialists, we will be able to advise you on whether the bankruptcy route is the best solution for you or how it can be avoided. We have a panel of Insolvency Practitioners (IP) with a wide range of experiences in different field sand we will appoint the most suitable one for your needs.
If the court does make a bankruptcy order, the appointed trustee in bankruptcy (the IP) will be required to distribute any income from your assets or property to all your creditors.
Once all your debts have been cleared, the bankruptcy may be discharged.
An Individual Voluntary Arrangement is an alternative to bankruptcy and should be considered before deciding to use the bankruptcy route.
For more information call us now on 0121 232 4622 for a free no obligation consultation. We’re on your side!