Personal Insolvency Solicitors, London. International.
The KaurMaxwell Insolvency team are able to provide comprehensive assistance on matters relating to financial distress of a business. Our experience in a broad array of industries equips us to provide a focused-approach which quickly identifies the legal issues that can arise during the course of a voluntary or court ordered insolvency proceeding.
Bankruptcy is an insolvency process for individuals. Unlike its corporate equivalent liquidation – only the Court could make an individual bankrupt. However, on 6 April 2016, the bankruptcy applications regime came into force replacing debtors’ bankruptcy petitions (but not creditors’ petitions). Although the change did not affect debtors’ petitions presented prior to 6 April 2016, any individual who now wishes to be made bankrupt must make an online bankruptcy application which is determined by the adjudicator (an official within the Insolvency Service), and not by the Court.
The making of a bankruptcy order – whether by the court or by the adjudicator – frees the debtor from the debts they owe to their creditors (save for some statutory exceptions) and prevents unsecured creditors from commencing – or continuing with – any legal process against the bankrupt or their property. A trustee in bankruptcy (trustee) will be appointed to divide certain assets of the debtor amongst those creditors who have a valid and approved claim.