A person becomes bankrupt either by petitioning the Court for a bankruptcy order on the basis that they cannot pay their debts as they fall due, or they may be made bankrupt by a person they owe money to bringing a petition against them to the Court.
In either case, if a bankruptcy order is made, the Official Receiver (a civil servant) will be appointed as Trustee in Bankruptcy and his staff will realise what assets there are and use them to defray the costs of the procedure and creditors’ claims as far as possible.
From 1st October 2015 the minimum debt owing to bring a bankruptcy petition has been increased to £5,000
Live Recoveries can advise you in detail on the process and its potential consequences in the light of your specific circumstances (some of your assets may be exempt) and, in particular, if there is potentially a better solution for all parties.
Find out how our team can help you to rescue your business from financial hardship from Liquidations and Administrations to CVAs our team has a solution for you.