Corporate Recovery Advice
Formal Insolvency Appointments
Bankruptcy
This is the last resort facing an individual who has been unable to formally or informally agree a repayment plan with his or her creditors. The process can be initiated by the debtor himself/herself or more commonly through the actions of a creditor (for debts over £750) via a Bankruptcy petition through the courts. If you are subject to a failed Individual Voluntary Arrangement your Supervisor also has the power to make you bankrupt.If you are made bankrupt then a Trustee is appointed over all your assets to realise them for the benefit of your creditors. This can entail the repossession and sale of your home.
Once a person enters Bankruptcy his or her debts are generally discharged after a year enabling the individual to make a fresh start after they receive official notification.
During the Bankruptcy period a person faces a number of restrictions on what they can and cannot do. Some of these are summarised below:
- Loss of control of their own assets.
- An inability to obtain credit over £500 without full disclosure.
- Cannot act as a director of a company or be involved in the promotion, formation or management of a limited company.
- May not be authorised to act as a chartered accountant, solicitor or any other profession which forbids practicing as a bankrupt under their own regulatory guidelines.
Partners at Geoffrey Martin & Co act as Trustees in Bankruptcy as well as advising individuals on the suitability of Bankruptcy as opposed to other insolvency processes. We are also more than happy to discuss options with you such as an annulment if you are already bankrupt or advising individuals or creditors on the affects of Bankruptcy.
Should you require any more information about how we can assist you please do not hesitate to contact Stephen Hull (Leeds) or James Sleight (London).