The Insolvency Service has published a report confirming that Michael McVey of Altrincham has been sentence to six months in prison for running One Design & Build Ltd, despite being disqualified. The Insolvency Service has highlighted that McVey was made bankrupt in 2015 and was prohibited from managing a company for four years, yet continued to run One Design & Build Ltd regardless of the fact he had resigned as a director. Additionally, the Insolvency Service stated that the offence came to light as a result of One Design & Build Ltd entering voluntary liquidation. McVey has since made an application for permission to appeal his sentence.

The court supervised process whereby the assets of an insolvent individual are realised for the benefit of his creditors.

The term used to describe the insolvency of an individual under English insolvency law. A person can only be made bankrupt by a court order and is governed by the Insolvency Act 1986, Pt IX.

A procedure whereby a bankrupt guilty of misconduct may have their bankruptcy restrictions continued for between two and 15 years notwithstanding bankruptcy discharge.

Same procedure as a Bankruptcy Restriction Order (BRO), where a bankrupt can voluntarily give an undertaking to be subject to bankruptcy restrictions for between two and 15 years. Usually slightly discounted period due to voluntary nature of the settlement.

Bankruptcy searches are checks carried out to identify whether an individual (or, in some contexts, a partnership) is subject to bankruptcy, sequestration, or related insolvency restrictions before completing a transaction or giving advice. They are commonly undertaken in conveyancing, lending, enforcement, matrimonial finance and corporate deals involving personal guarantees. In England and Wales and Northern Ireland, practitioners typically search the Individual Insolvency Register and relevant court records for bankruptcy orders, interim orders, Debt Relief Orders, and bankruptcy restrictions. In Scotland, searches focus on the Register of Insolvencies and court records for sequestration and related orders. In Ireland, searches are made against the public registers maintained by the Insolvency Service of Ireland and the Bankruptcy Division of the High Court. “Bankruptcy searches” is a descriptive practice term rather than a defined statutory expression, but the underlying insolvency concepts are governed by national insolvency legislation and rules. These searches are critical for assessing title, enforceability of security, transaction risk, and compliance with anti‑money laundering and client due diligence obligations across all four jurisdictions.

Bankruptcy is an insolvency process for individuals, which commences on the day the bankruptcy order is made. This Practice Note considers the effect of a bankruptcy order on co-owned property. Legal title to co-owned property does not vest in trustee in bankruptcy Where two or more people together own real property, they hold it under a trust of land. When a bankruptcy order is made, a bankrupt’s property normally automatically vests in the Official Receiver/trustee in bankruptcy. However, property owned by the bankrupt on trust does not. This means that in the case of co-owned property (whether as joint tenants or as tenants in common), where one joint proprietor is made bankrupt, the legal title does not change, only the bankrupt’s equitable interest vests in the trustee. As the legal interest remains vested in the co-owners as trustees (unless they are then replaced as trustees), any transfer should be executed by the bankrupt and the other co-owner(s)—see: HM Land Registry Practice Guide 24: private trusts of land. Note that section 36(1) of the Trustee Act 1925 creates a power

Restructuring and Insolvency analysis: The courts recognise the possibility of party to divorce proceedings attempting to use the protection of a bankruptcy order as a shield against the claims of the spouse for ancillary relief. Where a solvent spouse does this, the court has the power to annul the bankruptcy order under section 282(1)(a) of the Insolvency Act 1986.

A debt or liability from which a bankrupt is released upon his discharge from bankruptcy.

Where a bankrupt is released from bankruptcy and their bankruptcy debts.

That property of the bankrupt which is available to the trustee in bankruptcy to realize for the benefit of the bankrupt's creditors.

The bankruptcy level is currently £5,000 in respect of bankruptcy petitions presented to court on or after 1 October 2015 (prior to that date, the figure was £750).