24. Personal bankruptcy

The partner or sole trader may be made bankrupt if his liabilities exceed his assets or if he has insufficient liquid assets to pay his current liabilities even if the value of his total assets exceeds the value of his total liabilities. The law of bankruptcy is mostly contained in the Enterprise Act (EA) 2002. This chapter discusses the bankruptcy procedure; the trustee in bankruptcy; effect of the bankruptcy order on the bankrupt personally; assets in the bankrupt’s estate; distribution of the bankrupt’s assets; duration of the bankruptcy and discharge of the bankrupt; fast track voluntary arrangement scheme; and individual voluntary arrangement.