Bankruptcy in the United Kingdom is divided into separate local regimes for England and Wales, for Northern Ireland, and for Scotland. There is also a UK insolvency law which applies across the United Kingdom since bankruptcy refers only to insolvency of individuals and partnerships. Other procedures, for example, administration and liquidation, apply to insolvent companies. However, the term ‘bankruptcy’ is often used when referring to insolvent companies in the general media.
There were 16,582 bankruptcy orders in the UK in 2018, a 9.8% increase on 2017.
To make the bankruptcy process a little easier to understand, here are a few bankruptcy myths, dispelled by James Nicholls who is a very experienced insolvency and restructuring lawyer with over 26 years’ expertise in the “insolvency industry”.