Bankruptcy is a personal debt solution available to people in England, Wales, Scotland and Northern Ireland. It is a process when an individual is unable to pay their debts and when an individual becomes insolvent and a court makes a bankruptcy order. It is often seen as something to be avoided. Once the bankruptcy order is made by the court then the individual bankrupt’s property will vest in what is known as a trustee in bankruptcy.
A trustee in bankruptcy is someone who takes control of the bankrupt’s affairs and attempts to ensure all creditors of the bankrupt receive a percentage of what they are owed, subject to the number of creditors, the assets available and the statutory rules in regard to preferential creditors.