Personal insolvency for dispute resolution practitioners: bankruptcy

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Personal insolvency for dispute resolution practitioners: bankruptcy
  • Coronavirus (COVID-19)
  • What is bankruptcy?
  • The effects of bankruptcy and how long it lasts
  • How to make someone bankrupt
  • Types of petition
  • Grounds for creditors' petition
  • Summary of process
  • What if the debtor disputes debt?
  • What happens after the bankruptcy order is made
  • More...

Personal insolvency for dispute resolution practitioners: bankruptcy

This Practice Note is a summary of bankruptcy and its impact on legal proceedings from a dispute resolution perspective.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and the Commercial Rent (Coronavirus) Act 2022.

No bankruptcy petition may be presented in connection with ‘protected rent debt’ due under a business tenancy where the statutory demand was served, or the judgment or order forming the basis of the petition was issued, during the ‘relevant period. Broadly, this is from 10 November 2021 until:

  1. 24 September 2022, or

  2. where the rent arbitration process invoked, the conclusion of the arbitration

Any bankruptcy order made between 10 November 2021 and 24 March 2022 in contravention of the Commercial Rent (Coronavirus) Act 2022 is also retrospectively void.

For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and Rent arrears recovery under the Commercial Rent (Coronavirus) Act 2022. For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

What is bankruptcy?

Bankruptcy is an insolvency process for individuals. Until 6 April 2016—unlike its corporate equivalent liquidation—only the court could make an individual bankrupt. However, on 6 April 2016, the bankruptcy applications regime came into force replacing debtors' bankruptcy petitions (but not creditors' petitions). Although the change did not

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