Bankruptcy:
Bankruptcy (in a strict legal
sense) relates only to
individuals and partnerships.
However, the term 'bankruptcy'
is often used (incorrectly) when
referring to companies in the
media and in general
conversation. Bankruptcy in
Scotland is referred to as
Sequestration.Following the
introduction of the Enterprise
Act 2002, a UK bankruptcy will
now normally last no longer than
12 months and may be less, if
the Official Receiver files in
Court a certificate that his
investigations are complete.
There were 20,461 individual
insolvencies in England and
Wales in the fourth quarter of
2005 on a seasonally adjusted
basis. This was an increase of
15.0% on the previous quarter
and an increase of 36.8% on the
same period a year ago.
This was made up of 13,501
bankruptcies, an increase of
15.9% on the previous quarter
and an increase of 37.6% on the
corresponding quarter of the
previous year, and 6,960
Individual Voluntary
Arrangements (IVA’s), an
increase of 23.9% on the
previous quarter and an increase
of 117.1% on the corresponding
quarter of the previous year.
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