UK Bankruptcy Law

UK Bankruptcy Law

The aim of helping individuals to get out of debt is at the core of Britain’s bankruptcy law. Regardless of the stigma that surrounds insolvency, there is nothing sinister or punitive about the process. It simply clears as much of your debt as possible and helps you to repay a portion of what you owe to your creditors. This repayment is funded by the sale of your assets, including your home but excluding other things which are deemed to be essential, like the tools of your trade or, in some cases, your vehicle. You can file for personal bankruptcy as an individual, or as a partnership, if you find that your liabilities exceed your assets. A party can also file bankruptcy proceedings against you if you owe them £750 or more. If a company is failing, the insolvency process that they are subject to is referred to as administration.

The bankruptcy process in the UK underwent some changes to the legislation in 2004. As of the 1st of April 2004, the usual duration of an insolvency term is 1 year from the date that the Bankruptcy Order was instated. This change was originally outlined in the Enterprise Act 2002, reducing the amount of time it takes to discharge an individual from the procedure from three years.

Another change brought about by the Enterprise Act 2002 affected the amount of time afforded to the Trustee charged with selling your property. The aim of this asset sale is to release equity for your creditors and before the 1st of April 2004, there was no time limit in place. Since the Act took effect, the Trustee now has only three years to sell the property before it reverts to you.

If you would like more information, ring Debtsolver now on Telephone 08000 434 336 (Free for UK residents only) or complete our debt management wizard to see if you qualify