Individual bankruptcy law
When a person is unable to pay their debts, they are said to be insolvent. What we’re dealing with here is a matter of fact, not law.
Sections 267 and 268 of the Insolvency Act of 1986 specify when a creditor can file for bankruptcy on behalf of an individual who is judged unable to pay their debts. Such definitions of individual insolvency have long been embraced in practice.
When a person owes more than £5,000 to a creditor and meets one of the following two criteria, they are deemed insolvent.
There has been no response from the debtor within three weeks after being served with the statutory demand for payment, security, or compounding (and the debtor has not applied to the court to set aside the statutory demand).
Attempts have been made by the creditor to execute or otherwise enforce the obligation against the individual in question, but to no avail.
Business insolvency law
Businesses of different sizes and in a variety of industries rely on our legal expertise to guide them through formal insolvency proceedings customized to their needs. Whether you’re facing a winding-up petition, creditor pressure, or just wanting to restructure, our solicitors have the expertise to advise on the option that’s best for your firm. For more information regarding business and personal matter of insolvency, visit here עורך דין חדלות פרעון
For practitioners of insolvency law :
Who acts on behalf of a company as its monitor, liquidator, provisional liquidator, administrator, administrative receiver, or as the supervisor of a voluntary arrangement with the company. Also, a person who acts on behalf of an individual in the capacity of his or her trustee in bankruptcy. Until he or she has been adequately authorized under Section 390A of the Insolvency Act 1986, a person is not qualified to perform the functions of an insolvency practitioner.
Having been granted partial authorization to operate on behalf of firms or individuals since October 2015, insolvency practitioners now have the option of being fully authorized to act on behalf of companies, individuals, and insolvent partnerships (section 390A, Insolvency Act 1986). As a result, appointments with regard to insolvent partnerships can only be made by an insolvency practitioner who has completed all of the necessary requirements.
Moreover, if an insolvency practitioner who is partially authorized to act in relation to a company is aware that the company is or was a member of a partnership and that the company has outstanding liabilities in relation to the partnership, the insolvency practitioner may not accept an appointment to act in relation to the company (section 390B, Insolvency Act 1986).
Similarly, an insolvency practitioner who is partially authorized to act with respect to an individual who is or was a member of a partnership and who has outstanding liabilities in connection with that partnership is subject to the same restrictions.
A person who was already authorized to act as an insolvency practitioner prior to the first day of October 2015 will be granted complete authorization.
An insolvency practitioner must be an individual who has been granted permission to act as an insolvency practitioner (either for all purposes or exclusively with respect to firms or individuals) by a recognized professional body to practice insolvency. In practice, insolvency practitioners are virtually always accountants or other financial professionals.