What are the various types of Bankruptcy?

Bankruptcy can be initiated by a creditor who files a petition at the court in the event of an unpaid debt asking for an individual to be made subject to a bankruptcy order.

Bankruptcy can also be initiated by the individual who owes the money themselves. This is now an online process which involves applying online for a Bankruptcy Order and the matter then being referred to the Office of the Adjudicator who will look at the information regarding the individual’s assets and liabilities and income to make a decision as to whether a Bankruptcy Order is appropriate.

Additionally, and quite rarely, the relevant government department can also apply for a Criminal Bankruptcy Order against an individual who has incurred debt and is believed to be involved in criminal activity usually including some element of money laundering. The aim of such a petition is to freeze the assets of that individual and undertake investigation.

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