[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN ENGLAND] 35
estate. The trustee in bankruptcy also has extensive powers to investigate prior conduct of the bankrupt, recover hidden assets, and conduct litigation. A bankrupt will usually be discharged from bankruptcy after 12 months after which most debts cannot be enforced against the bankrupt or property acquired after discharge from bankruptcy. 7.2. Individual voluntary arrangement: An individual may propose a compromise with creditors which binds all creditors if approved by 75% of creditors by value. As with company voluntary arrangements, no court order is needed for this, but certain documents need to be filed with the court, and the
arrangement may be open to challenge for unfair prejudice or material irregularity. 7.3. Debt relief orders: These offer a simplified procedure to provide a breathing space for a year and, if the debtors’ position has not then improved, for the debts to be written off. It is only available for smaller estates where the formality of bankruptcy seems unwarranted. This article provides a high-level guide to a complex area. It should not be relied on as legal advice as the law is this area of law is subject to swift change and cases will depend on their individual facts. Fladgate LLP is a full-service English law firm. For insolvency and restructuring queries please contact Jeremy Whiteson, Sophie Burke, or Judith Davidge.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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