Part 4 of the Personal Insolvency Act 2012 introduces changes to the existing bankruptcy regime. A key change in the legislation is the reduction of the bankruptcy term from 12 to 3 years. This will make it a realistic option for some people.
While the personal insolvency legislation is intended to provide a range of solutions for debtors it is inevitable that in certain cases the level of debt and personal financial circumstances of the debtor may prevent them from making a realistic or workable offer to their creditors. In these cases bankruptcy will need to be considered.
We will explain the application process and the implications of bankruptcy for the debtor, their family home and their secured, preferential and unsecured creditors. We will also explain their ongoing obligations to the official assignee in bankruptcy once they have been adjudicated bankrupt.