UK Bankruptcy Law
- See also:
- Bankruptcy Overview
- Bankruptcy FAQs
- Disadvantages of Bankruptcy
- How to File for Bankruptcy
- How to Avoid Bankruptcy
- The Effects of Bankruptcy
- UK Bankruptcy Law
- Alternatives to Bankruptcy
The idea governing UK bankruptcy law is to give "honest" debtors a clean start by relieving them of the majority of their debts and enabling them to repay their creditors via the sale of any existing assets.
UK bankruptcy law only affects individuals and partnerships.
In 2004, a number of important reforms were made to UK bankruptcy law as set out in the Enterprise Act of 2002.
In this section we shall outline details of The Enterprise Act and these legal reforms.
If you would like any further information about UK bankruptcy law and the possible alternatives to going bankrupt, please contact us by clicking the link below and completing the short contact form:
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The Enterprise Act
The Enterprise Act of 2002 covered a range of measures which were designed to improve enterprise.
It aimed to:
- Transform Britain's approach to bankruptcy and corporate rescue;
- Strengthen its competition framework; and
- Empower consumers.
Click here for a copy of The Enterprise Act of 2002
UK Bankruptcy Law Reform
Release of Equity Restricted
Prior to the changes to UK bankruptcy law in 2004, the Trustee had an indefinite period of time available to release the equity in a property which was the sole or primary residence of the bankrupt or his/her spouse or former spouse.
The reforms to UK bankruptcy law mean that a trustee now has a time limit of three years to realise the property interest.
After this time, if the Trustee has not realised the interest in the property, it will re-vest in the bankrupt person.
UK Bankruptcy Law Reform
Duration of the Bankruptcy
The changes to the Enterprise Act mean that the duration of bankruptcy has been reduced.
According to UK bankruptcy law prior to the amendments bankrupts would automatically be discharged after two to three years.
The UK bankruptcy law reforms mean that now bankrupts are generally discharged after just one year.
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