What is bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay.
If you are declared bankrupt:
- the majority of your debts will be cancelled (up to the date of bankruptcy)
- your assets may be shared among your creditors
- you will have certain restrictions placed on you
- your name will be added to a bankruptcy register and published in the newspaper
- your bankruptcy will usually last 12 months
Anyone can become bankrupt including:
- individuals trading as sole traders
- individual members of a partnership
Only individuals can become bankrupt. There are different procedures for limited liability partnerships and companies.
If you are facing bankruptcy you should seek advice from a reputable source, including:
- Advice NI Business Debt Service
- a solicitor
- an accountant or financial advisor
- an insolvency practitioner
You should be wary of unsolicited approaches through the post or by telephone.
For more information, see get advice about bankruptcy.