Glossary Of Debt Management & Financial Terms
Bankruptcy
These are the personal insolvency proceedings, which result in a bankruptcy order being made against an individual. An individual debtor may petition for his/her own bankruptcy. Alternativley, and more commonly, a creditor owed ?750 or more may issue a petition for the bankruptcy of an individual debtor. Anyone facing a bankruptcy petition should take early advice, on its consequences.
The process of an individual becoming legally insolvent. Both the debtor and the creditor can petition for bankruptcy to the courts, the debtor can declare themselves insolvent immediately on return of the relevant forms to the court, however the creditor must first issue a statutory demand for bankruptcy, which gives the debtor 21 days to either negotiate with the creditor, clear the debt or obtain an interim order from the court. See Insolvency, Statutory Demand for Bankruptcy and Interim order.
