The Bankruptcy Process

Before starting the bankruptcy process, you must make sure that you have fully researched all possible alternatives and have taken expert advice from an Insolvency Practitioner. Only then can bankruptcy be your the best option. 

We can talk you through other ways of solving your debt problems. Please see the website information, or speak to one of out specialist advisors on 0808 131 9100 who can help determine your best solution option.

Whether or not you are made bankrupt is determined by Court after a bankruptcy petition has been presented by you or your creditors. The order can be made without your consent, regardless of whether you agree to the proceedings or not.

On the making of the Bankruptcy Order, the Official Receiver will require full details of your financial circumstances which may require a face to face interview.

Once they have details of your financial position, such as your disposable income, they will call a creditor meeting to explain the situation. If you have assets which can be sold, then your a Trustee (an Insolvency Practitioner) will be appointed to deal with this process.

This Trustee may apply to Court for an Income Payments Order if it appears that you have available surplus income. This Order will be in force for three years even though you may be legally discharged from your bankruptcy after 12 months!

Any financial associates will be notified about your situation, such as utility suppliers and landlords.

You should always remember that bankruptcy is a legal issue and consequently there are many serious consequences which are unavoidable.  Please contact one of our specialist advisors who will be able to assist you further on: 0808 131 9100.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)