What Is Bankruptcy?
In the event that an IVA is not appropriate then bankruptcy may be the correct course for you to take as an individual. You may present your own bankruptcy petition (a debtors petition) or you may, be forced into bankruptcy if a creditor petitions the court (a creditors petition)
A trustee in bankruptcy is appointed over the bankrupt’s estate and is responsible for realising all the bankrupts assets for the benefit of creditors.
The bankruptcy order will be advertised in your local newspaper so that your creditors are aware of your bankruptcy and can lodge their claim with your trustee. Your creditors will rank for a dividend, should one be payable when your assets have been realised.
Bankrupts will obtain automatic discharge from bankruptcy within 12 months of being made bankrupt.
Bankrupts could have their bankruptcy annulled by arranging an IVA with an insolvency practitioner.