Bankruptcy and court action

Bankruptcy and court action

In this article we discuss the bankruptcy procedure you would follow to make yourself bankrupt, the effects of a bankruptcy order, how your assets will be distributed amongst your creditors (the people you owe money to) during your bankruptcy, when you will be discharged from bankruptcy, and some alternatives to bankruptcy.

What is bankruptcy?

Bankruptcy is a process that can be used to deal with your insolvency. You will be insolvent if you can't pay your debts.

There are detailed rules but, in very broad terms, the purpose of bankruptcy is:

(1) to ensure that your assets are collected in, sold and the net proceeds shared amongst all your creditors in proportion to what they are owed; and

(2) to give you a fresh start, freed from the burden of your debts.

Alternatives to bankruptcy

There are alternative procedures that could help you deal with your debts without being made bankrupt, such as:

Copyright © 2024 Epoq Group Ltd. All trademarks acknowledged, all rights reserved

This website is operated by Epoq Legal Ltd, registered in England and Wales, company number 3707955, whose registered office is at 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, WD6 1JN. Epoq Legal Ltd is authorised and regulated by the Solicitors Regulation Authority (SRA number 645296).

Our use of cookies

We use necessary cookies to make our site work. We would also like to set some optional cookies. We won't set these optional cookies unless you enable them. Please choose whether this site may use optional cookies by selecting 'On' or 'Off' for each category below. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookie notice.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Functionality cookies

We'd like to set cookies to provide you with a better customer experience. For more information on these cookies, please see our cookie notice.