Bankruptcy is one way of dealing with debts you cannot pay and should only be considered as a last resort. The bankruptcy proceeding discharges you from most debts, allowing you to make a fresh start. Your estate (comprising of your assets) will be vest in a trustee who has a duty to realise any interest you have and distribute the proceeds among your creditors. You will be allowed to keep essentials for living and tools of your trade.
If there is equity in your property, then this is likely to also be realised. Your bank accounts will be frozen and your credit cards stopped. There are a number of restrictions and obligations whilst you are an undischarged bankrupt, including, being unable to practice certain professions, act as a company director and taking further credit.
Any individual can go bankrupt, including individual members of a partnership. You may petition for your own bankruptcy or one of your creditors can petition to the Court.
We provide advice and support to individuals who have been served with a bankruptcy petition. We can help individuals understand what the petition means, discuss the options available and consider whether there are ways to resolve their financial difficulties without bankruptcy. Where appropriate, we can advise on the implications of bankruptcy, the steps involved in the process and provide support and representation at the relevant court hearing.