"personal or individual bankruptcy ..."
A Bankruptcy Petition is the start of the process to make a person bankrupt because that person is unable to his/her debts.
Either you yourself can apply to be made bankrupt or, a creditor can make the application provided you owe more than £750.00
The process starts by a Creditor applying to the Court for a Bankruptcy order to be made following the non- payment of a debt, usually either non- payment of a court judgment or failure to pay under a statutory demand. Once the petition is issued it has to be served on the debtor personally. That Petition contains the date when the court will decide whether to make the order or not.
Once a Bankruptcy Order has been made by the Court, it will up to the Official Receiver or Trustee to use or sell the assets to pay off the debts. A Bankruptcy order usually lasts for 12 months and during that period there are certain financial restrictions placed on a bankrupt person. It is a criminal offence to breach these restrictions. Further, the 12 month period can be extended if the Trustee considers there has been dishonesty on the part of the bankrupt.
Assets that can be sold include any property or other goods not considered exempt such as tools or vehicles required for your employment or household items. Bank accounts will be frozen and any income or salary coming in will in part be used to pay off the debts. This is known as and Income Payments Arrangement or Order and can last for up to 3 years.
At Silver Shemmings we are able to either issue Petitions on your behalf or should you be on the receiving end of an application to make you bankrupt then we can review the case and if appropriate make arrangements for representation at the hearing
For more information and initial advice please contact us.