Glossary - Bankruptcy
Bankruptcy (in a strict legal sense) relates only to individuals and partnerships. However, the term 'bankruptcy' is often used (incorrectly) when referring to companies in the media and in general conversation. Bankruptcy in Scotland is referred to as Sequestration.
Following the introduction of the Enterprise Act 2002, a UK bankruptcy will now normally last no longer than 12 months and may be less, if the Official Receiver files in Court a certificate that his investigations are complete.
There were 20,461 individual insolvencies in England and Wales in the fourth quarter of 2005 on a seasonally adjusted basis. This was an increase of 15.0% on the previous quarter and an increase of 36.8% on the same period a year ago.
This was made up of 13,501 bankruptcies, an increase of 15.9% on the previous quarter and an increase of 37.6% on the corresponding quarter of the previous year, and 6,960 Individual Voluntary Arrangements (IVA's), an increase of 23.9% on the previous quarter and an increase of 117.1% on the corresponding quarter of the previous year.
Disagree with our definition?
Please put your thoughts here
Search for IP/IVA Firm
Last 10 Reviews