What is Bankruptcy?

Bankruptcy is one way of dealing with debts you cannot pay.  Bankruptcy proceedings free you from overwhelming debts so you can make a fresh start and make sure your assets (if you have any) 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.

A court makes a bankruptcy order only after a bankruptcy petition has been presented.  It is usually presented either by yourself (as a debtor’s petition); or by one or more creditors (a creditor’s petition) who are owed at least £750 by you and that amount is unsecured.

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 has been made is both difficult and expensive.

If you are considering or threatened with bankruptcy you should seek urgent independent advice from an expert.  Bankruptcy has serious implications in respect of any assets that you own or business you may be running.

You do not have to become bankrupt just because you are in debt.  There may be other more appropriate alternatives such as an Individual Voluntary Arrangement, Debt Management Plan or a Debt Relief Order.

If you are already bankrupt you can still propose a individual voluntary arrangement which could annul/cancel the bankruptcy.  If all of your bankruptcy debts and the fees and expenses of the bankruptcy proceedings can be paid or secured in full you should contact us for further advice.

Getting in touch with an insolvency expert for free debt advice is as easy as picking up the phone.  Call the Debt Advice Helpline Maidstone on free phone 0800 169 1536