What is Bankruptcy?

If you cannot avoid bankruptcy, it's important to know what bankruptcy is and what the consequences are. Bankruptcy will clear your unsecured debts, although it has serious consequences and should be your last resort.

Bankruptcy is a process that allows you to deal with debts you cannot pay. Although the bankruptcy proceedings place certain restrictions upon you they will:

A court official called an "Official Receiver" is appointed to administer your bankruptcy. The Official also investigates your affairs to see if you are to blame for your position.

What Happens During Bankruptcy?

The following points give an overview of what will happen.

The following sections will help explain what to expect during bankruptcy.

As mentioned in Piggy's bankruptcy blog, bankruptcy is not a course of action that should be taken likely and not all types of debt can be included.

There are many alternatives for people in debt and through bankruptcy advice it may be possible to avoid bankruptcy and deal with the debts in a more appropriate manner.

Who can go Bankrupt?

Any individual can file for bankruptcy, however, there are different insolvency procedures for partnerships and companies.

A bankruptcy order will only be made once a petition has been presented to the court. This can either be achieved by yourself filing bankruptcy (presenting a debtors petition) or by a creditor presenting a petition.

Note: If a creditor has presented a petition against you it may still be possible to avoid bankruptcy. Seek advice as soon as possible.
See Bankruptcy advice.

Who Administers the Bankruptcy?

Once the bankruptcy order has been made the trustee in bankruptcy is either the Official Receiver or Insolvency Practitioner who takes control over your assets. It is the trustee's responsibility to sell these assets and share the proceeds out amongst the creditors.

It is the responsibility of the Official Receiver to administer your bankruptcy and investigate your affairs leading up to and during the bankruptcy.

Bankruptcy Help

If you cannot find what you are looking for here on Piggy's website, the following links may prove useful:

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Just ask Piggy
If you cannot find what you are looking for then try asking Piggy Bankrupt - Ask Piggy
Avoid Bankruptcy

Through an IVA you may be able to avoid bankruptcy. Visit the IVA Centre

Bankruptcy Links
Bankruptcy Advice
Seeking advice is the most important step in dealing with debt. For a list of places offering free debt help visit the Advice section.
Piggy's Bankruptcy Journey
Visit Piggy's Bankruptcy Blog to read what bankruptcy was like for Piggy Bankrupt.

As featured in the Guardian newspaper this very honest account describes his experience.
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