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Bankruptcy
Bankruptcy petition presented to the court either by a creditor owed more than £750 or by the debtor him/herself.
Court makes bankruptcy order, which is advertised in the London Gazette.
The Trustee in Bankruptcy (either the Official Receiver or a Licensed Insolvency Practitioner) realises assets of the bankrupt and distributes any surplus monies raised by dividend to creditors.
Bankruptcy usually automatically discharged after 3 years (sometimes 2).Individual Voluntary Arrangement (IVA)
Similar to CVA (see above).
Debtor makes proposals to creditors for the repayment of some or all of his/her debts over an agreed period of time.
Court grants an interim order temporarily preventing most legal action being commenced or continued against the debtor.
Must be approved by 75% of creditors (by value); if approved binds all creditors with notice of it.
Rights of secured creditors largely unaffected.
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