History
The history of British bankruptcy law extends back to the middle ages in feudal England. At first, lords held the many sections of the country and their bankruptcy laws revolved around imprisonment in the 1200s. As commerce increased along with the frequency and popularity of contracts, bankruptcy law began to evolve with the need for legal debt solutions. By the 1500s, bankruptcy laws took shape into a crude resemblance of what most countries hold as standard bankruptcy laws. However, early bankruptcy laws were designed to protect the interest of creditors, whereas over the years laws have been changed to protect debtors.
Types
Bankruptcy laws in Britain revolve around two types: voluntary and involuntary. Voluntary bankruptcy filings are declared by an individual on their own accord to make an attempt at consolidating debt. Involuntary bankruptcies entail one or more creditors that attempt to force an individual into a bankruptcy in order to collect debts they are owed. Bankruptcies in the UK revolve around individuals and partnerships and help resolve insolvency cases. In addition to bankruptcy, the government allows debtors the option of an individual voluntary arrangements or IVAs, which let debtors pay a small portion of what they owe to their creditors much like the US
The history of British bankruptcy law extends back to the middle ages in feudal England. At first, lords held the many sections of the country and their bankruptcy laws revolved around imprisonment in the 1200s. As commerce increased along with the frequency and popularity of contracts, bankruptcy law began to evolve with the need for legal debt solutions. By the 1500s, bankruptcy laws took shape into a crude resemblance of what most countries hold as standard bankruptcy laws. However, early bankruptcy laws were designed to protect the interest of creditors, whereas over the years laws have been changed to protect debtors.
Types
Bankruptcy laws in Britain revolve around two types: voluntary and involuntary. Voluntary bankruptcy filings are declared by an individual on their own accord to make an attempt at consolidating debt. Involuntary bankruptcies entail one or more creditors that attempt to force an individual into a bankruptcy in order to collect debts they are owed. Bankruptcies in the UK revolve around individuals and partnerships and help resolve insolvency cases. In addition to bankruptcy, the government allows debtors the option of an individual voluntary arrangements or IVAs, which let debtors pay a small portion of what they owe to their creditors much like the US
chapter 13 bankruptcy filing.
Effects
Bankruptcy laws in the UK are lax compared to many other countries. The effects of bankruptcy laws in the UK have often increased credit problems and attributed to countrywide financial problems. According to Grainne Gilmore and Gary Duncan of the UK published Sunday Times, the fact that bankruptcy periods are as short as 12 months causes a large amount of financial strain on creditors and financing agents.
Significance
The significance of British bankruptcy laws carries over to many aspects of the UK’s economy and affects the markets of many countries. Bankruptcy in the UK affects consumers by forcing them to turn over assets to officials for creditor dispersion.
Officials
Several officials carry out the many tasks in a bankruptcy along with providing assistance for debtors. Insolvency practitioners hold authorization from the Department of Business Innovation and Skills and specialize in disposing of assets and sending payments to creditors. Official receivers are appointed by the secretary of state and are considered officers of the court. Official receivers administer the bankruptcy and have the ability to act as a trustee in the absence of an insolvency practitioner.
Bankruptcy laws in the UK are lax compared to many other countries. The effects of bankruptcy laws in the UK have often increased credit problems and attributed to countrywide financial problems. According to Grainne Gilmore and Gary Duncan of the UK published Sunday Times, the fact that bankruptcy periods are as short as 12 months causes a large amount of financial strain on creditors and financing agents.
Significance
The significance of British bankruptcy laws carries over to many aspects of the UK’s economy and affects the markets of many countries. Bankruptcy in the UK affects consumers by forcing them to turn over assets to officials for creditor dispersion.
Officials
Several officials carry out the many tasks in a bankruptcy along with providing assistance for debtors. Insolvency practitioners hold authorization from the Department of Business Innovation and Skills and specialize in disposing of assets and sending payments to creditors. Official receivers are appointed by the secretary of state and are considered officers of the court. Official receivers administer the bankruptcy and have the ability to act as a trustee in the absence of an insolvency practitioner.
