Bankruptcy (BKY)

Bankruptcy is one way of dealing with debts you cannot pay. The Bankruptcy proceedings:

Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.

Separate publications about these insolvency procedures are available on the following website: www.bis.gov.uk/insolvency/publications.

An individual is made bankrupt by a court making a bankruptcy order after a Bankruptcy Petition has been presented. The Petition is usually presented either:

A Bankruptcy Order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the Bankruptcy Petition is due to be heard. Trying to do so after the Bankruptcy Order has been made is both difficult and expensive.

Your estate (comprising of your assets at the date of the Bankruptcy Order) will vest in a Trustee who has a duty to realise any interest you have and distribute the proceeds among all your creditors. You will be allowed to keep tools of your trade and essentials for living.

Any equity in your property is likely to also be realised for the benefit of your creditors. Your bank accounts will be frozen and your credit cards cancelled.

There are a number of restrictions and obligations whilst you are an un-discharged bankrupt, including taking further credit, acting as a director of a company, and being unable to practice certain professions.

Please contact Saud and Co for more information and advice on your individual case.

Saud & Co, Registered office: 21 Highfield Road, Dartford, Kent DA1 2JS
Tel 0208 304 0609 - Fax 0700 608 8816
Saud & Co is a trading name of Saud & Company Limited.
Company Registration Number 08402929 – VAT registration 726 1719 34
Authorised by the Insolvency Practitioners Association to act as Licensed Insolvency Practitioners in the UK