What’s it for? An application to the court for someone’s assets to be taken and sold to cover debts.
A bankruptcy petition can be made by a debtor themselves or his or her creditors. With the courts approval the debtors assets are sold and distributed between creditors equitably.
The bankruptcy petition is usually presented by a creditor or a representative on the basis that the debtor is unable to pay their debts.
The High Court will regard an individual as being unable to pay his/her debts if either of the following occurs:
Insolvency law requires that the petition be served on the individual. Our process servers are located throughout the UK and can ensure your bankruptcy is served in accordance with any special instructions from the courts. We can provide a witness statement or affidavit as proof of service, avoiding any unnecessary holdups to your case. It’s important to act fact in insolvency cases to ensure the best possible chance of success and recovering any moneys that you are owed.
The court will usually appoint an Official Receiver (a civil servant in The Insolvency Service and an officer of the High Court) to be receiver and manager of the bankrupt’s affairs.
It is the Official Receiver’s responsibility from the date of the bankruptcy for protecting the bankrupt’s assets and other administration of the bankruptcy. The Official Receiver has a duty to investigate the bankrupt’s affairs. Certain restrictions and duties are imposed on a bankrupt as standard. If any anomalies are highlighted by the Official Receiver then they will ask the bankrupt to provide further evidence to support their position. Depending on the outcome and whether the Official Receiver is satisfied with the response will determine whether any further action is taken.
Need more information on serving a bankruptcy petition? Contact us.
Please note: The above is not meant to constitute legal advice. The law changes regularly and as such we recommend speaking to a legal professional for clarification.