Bankruptcy

Bankruptcy is a much-confused insolvency process that applies only to individuals. It can apply where the value of an person's liabilities exceeds the value of their assets , or indeed when they simply cannot make payments due.

An individual can either file for their own bankruptcy (there are some costs) or wait for a creditor to bankrupt them. A bankruptcy order is made by the court.

It is the level of the ‘gap’ between the value of the assets held and the amount due to creditors that will usually determine whether an individual should consider an alternative to bankruptcy such as an Individual Voluntary Arrangement (IVA).

Bankruptcy now runs for a maximum of 12 months.

Contact us on 01772 641146 for expert advice