Bankruptcy and insolvency


It is a common misconception that insolvency and bankruptcy are interchangeable terms, but in fact bankruptcy applies to individuals and insolvency is used in relation to companies. Many people face problems with their debts and in extreme circumstances this can lead to insolvency or bankruptcy. This is becoming increasingly common in the current economical climate especially due to how easy it used to be to get credit. If you find yourself in a position where you are unable to meet your monthly repayments and are being hassled by creditors, leaving you worried and stressed, then you may need the help of a specialist bankruptcy or insolvency solicitor.

Bankruptcy has many negative connotations associated with it but this should not necessarily be the case. In many circumstances bankruptcy can be the best option and often people who experience bankruptcy feel relieved afterwards. Once a bankruptcy order has been made against you either at your request or at the request of a creditor to whom you owe £750 or more an Official Receiver will be appointed who will be responsible for administering your bankruptcy unless an insolvency practitioner is appointed. Once the order has been made against you, your creditors will no longer pursue you to settle the debt. Repayment becomes the responsibility of the Trustee appointed by the court to administer your bankruptcy. In most cases, the official title of bankruptcy will only apply to the individual for one year.

If you have been made insolvent or declared bankrupt there are however some major drawbacks. For example you will not be able to work as a lawyer, accountant, MP, director of a company or a financial advisor. Sound legal advice should be taken if you feel that bankruptcy or insolvency is required.

If you would like to obtain legal advice on bankruptcy or insolvency then Caven can put you in touch with a local bankruptcy or insolvency solicitor free of charge. So, if you have any questions or would like our help in finding local bankruptcy or insolvency solicitors please call us at 08001 221 2299 or complete the web-form above.

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