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Personal Insolvency
BANKRUPTCY
Bankruptcy is the insolvency procedure
of handling the estate of an individual following a bankruptcy
order of the court. In the main bankruptcy proceedings are initiated
by the individual himself or by a creditor by presenting a petition
to court. Upon making the order the individual is known as an
undischarged bankrupt and all of his assets belong the bankruptcy
estate initially under the control of the official Receiver
and latterly by the Trustee in Bankruptcy.
In addition to the trustee's main duty of
getting in,recovering, realising and distributing the bankrupt's
estate, the procedure also examines the causes of failure as
well as investigating pre bankruptcy transactions.
Bankruptcy is no longer a draconian procedure and is designed
to balance the interests of creditors with those of the individual
wishing to be given the chance to rebuild their life.
For more information or to arrange
your initial FREE consultation please telephone Mark
Botwood on (01902) 393007.
QUESTIONS
What is the duration of my bankruptcy?
In the majority of cases discharge is 1 year or earlier from
the date of the bankruptcy order. There are exceptions.
How does it effect my family
home?
Your home may have to be sold by the Official Receiver or Trustee
to pay towards settling your bankruptcy debts. However if the
property is jointly owned then the Official Receiver or Trustee
is only entitled to your beneficial interest in the property.
It is possible for the beneficial interest and/or legal title
to be transferred, at a negotiated figure, to you, your husband,
wife, partner, a relative or friend and would recommend that
you contact either the official Receiver or Trustee as soon
as possible after the Bankruptcy Order is made especially in
view of the increasing property prices.
Can I work when I am bankrupt?
Yes, however during your bankruptcy period the Official Receiver
or Trustee will expect you to make contributions to creditors
of around 50% of any disposable income. If agreement cannot
be reached an application can be made to the court by the Official
Receiver for an Income Payments Order.
What personal restrictions are
there?
Some of the main restrictions are:
Credit -
It is an offence to obtain credit either jointly or alone for
a sum greater than £500 without informing the person from
whom the credit is obtained that you are an undischarged bankrupt
Acting as a director -
A bankrupt is automatically disqualified from acting as a director
whilst an undischarged bankrupt. You are also restricted from
acting directly or indirectly in the promotion, formation or
management of any company except with court leave.
Sole tradership -
An undischarged bankrupt cannot engage in any business in a
name other than that in which he was adjudged bankrupt without
disclosing his name in which he was adjudged bankrupt to all
persons with whom he enters into any business transactions.
Please select an area you are interested
in from the list below.
To find out more, please explore
the links. |
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