When an individual simply cannot pay what they owe, bankruptcy is the formal process that takes over: it gives creditors an orderly, collective way to recover something, and gives the debtor a route to a fresh start. As a solicitor you might sit on either side — pressing a creditor's claim, advising a debtor on their options, or working with the trustee who gathers and shares out the estate. Knowing how each stage fits together lets you advise clearly when the stakes for everyone are high.
This lesson takes you through the process in the order it unfolds:
- Overview and Routes into Bankruptcy — what bankruptcy is, how it begins, and what the trustee does.
- Creditor's Petition — the debt and thresholds a creditor needs to petition.
- Statutory Demands and the Petition Hearing — setting aside demands and disputed debts.
- Debtor's Own Application — the online adjudicator route for debtors.
- The Bankruptcy Estate — what assets fall in, what is excluded, and after-acquired property.
- The Family Home and Income — sale of the home and income payments orders.
- Proving and Distribution — how creditors claim and the order they are paid.
- Transactions at an Undervalue and Preferences — clawing back unfair dealings.
- Restrictions and Discharge — life as a bankrupt and walking away free.
- Annulment and Individual Voluntary Arrangements — undoing bankruptcy and the IVA alternative.