Helping you through Bankruptcy
Our Insolvency team can provide comprehensive assistance on matters relating to the financial distress of a business. Our experience in a broad array of industries equips us to provide a focused approach to enable us to quickly identify the legal issues that can arise during a voluntary or court-ordered insolvency proceedings.
What is bankruptcy?
Bankruptcy is an insolvency process for individuals. Unlike its corporate equivalent, liquidation, only the Court can 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 before 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 any properties. 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.
Handling antecedent transactions.
If during an office holders' investigations into the events and circumstances of the companys' insolvency, it becomes apparent that the directors of the company have profited from their position as directors (other than by remuneration) or were thought to have used company property for their benefit, it is incumbent on the office holder to take steps to recover that property.
Such conduct by the directors may also expose them (in liquidation only) to a misfeasance claim by the liquidator under Section 212 of the Insolvency Act 1986.
We regularly assist and advise on all types of insolvency matters, whether it be contentious or non-contentious.
Please get in touch with our experienced team today.
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