Bankruptcy - An Overview

There are many individuals today that may feel that bankruptcy will be the solution to their financial problems. For those with large debts, it could be a viable solution if there is no other way of settling the debt. However in many cases this option should be viewed as the last resort.

When an individual becomes bankrupt there are severe restrictions placed against that person, for example:

- Acting as director of a company, starting, managing or promoting a company without the permission of the courts.
- Continuing to run a business in a different name from that for which the bankruptcy was made without informing all associates doing business with you.
- Obtaining credit of more than £250.00 or more without disclosing the status of your bankruptcy.

When an individual has become bankrupt, it means that the individual has become insolvent.
Insolvency occurs when a person’s liabilities exceed his assets or when a person cannot meet his financial obligations when they fall due.