What is Bankruptcy?
Bankruptcy is a formal court process where a declaration of bankruptcy is made. This happens when someone does not have enough money to cover their liabilities.
When a bankruptcy order is made, all the assets of the bankrupt vest in the Official Receiver who then administers the affairs of the bankrupt. Effectively, the Official Receiver steps into the bankrupt’s shoes in terms of the property and other assets that they own.
Who can use the Bankruptcy Procedure?
A person who cannot pay their debts can apply to make themselves bankrupt (“a debtor’s petition”).
In other cases, a bankruptcy order can be sought by someone who is owed money, who is called a creditor (“a creditor’s petition”).
This is a technical and complex area of law. At Samuels we have extensive experience in acting for people threatened with bankruptcy, or creditors who might wish to use the bankruptcy procedure as a last resort.
We can assist on all aspects of bankruptcy, for example:
- Avoiding bankruptcy if you’re in financial difficulty;
- Going through formal or informal bankruptcy procedures;
- Negotiating repayment agreements with creditors or debtors;
- Recovering money owed by an insolvent individual or company;
- Protecting family assets if a family member is insolvent;
- Purchasing assets from insolvency estates;
- Structuring transactions to manage the risk of other parties becoming insolvent;
- Applications to set aside a bankruptcy order; and
- Claims by or against bankrupts.
Whatever your situation, it’s vital to secure legal advice and representation as soon as possible to ensure the best possible outcome. Contact us today to find out how we can help.
Latest Bankruptcy News
A recent case clarifies that a debtor was entitled to a PPI payout after an IVA was completed. Read on to find out more.14/07/2015
If someone tries to make you bankrupt over a debt you dispute, a new case could help. Read on to find out more.18/06/2015