1. What bankruptcy means
Bankruptcy is one way for individuals to deal with debts they cannot pay. It does not apply to companies or partnerships.
The bankruptcy process:
- makes sure your assets are shared among those you owe money to (creditors)
- lets you make a fresh start free from debt (with some restrictions)
2. Who can be made bankrupt
A bankruptcy order can be made for one of three reasons:
- you cannot pay what you owe and want to declare yourself bankrupt
- your creditors apply to make you bankrupt because you owe them £5000 or more
- an insolvency practitioner makes you bankrupt because you’ve broken the terms of an individual voluntary arrangement (IVA)
2.1 If you do not live in England or Wales
You…