Bankruptcy

Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization.

Bankruptcy in the United Kingdom

In the United Kingdom (UK), a Trustee in bankruptcy must be either an Official Receiver (a civil servant) or a licensed insolvency practitioner.

Related Topics:
United Kingdom - Trustee in bankruptcy - Official Receiver - Insolvency practitioner

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Following the introduction of the Enterprise Act, a UK bankruptcy will now normally last no longer than 12 months and may be less, if the Official Receiver files in Court a certificate that his investigations are complete.

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It is expected that the UK Government's liberalisation of the UK bankruptcy regime will massively increase the number of bankruptcy cases; initial Government statistics appear to bear this out. It remains to be seen whether the leash has been loosened too far and whether the legislation will need reviewing if the system becomes too overheated with debt-dumping debtors.

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