Please find below the definition of bankruptcy and related terms.

Bankruptcy is a legal process that a debtor or creditor can initiate and become subject to to settle outstanding debts. In England and Wales, it applies to individuals only.

Personal insolvency is the inability of a debtor to pay their debts as they fall due.

The Commencement of the BanCommencement: The date the bankruptcy order was made. Bankruptcy continues until discharge.

Bankruptcy discharge is the process by which the debtor is no longer bankrupt. The bankruptcy debts not preserved will be discharged, and the restrictions will be lifted, save for any order or undertaking in force.

A debtor is an entity who owes money.

A creditor is an entity who is owed money.

An asset is property of some value that an individual owns. In bankruptcy, a debtor’s assets are collectively known as the bankruptcy estate, defined by the Insolvency Act.

A liability is money owed by the debtor.

The bankruptcy estate is all property belonging to or vested in the bankrupt at the commencement of the banCommencementvisions of the insolvency act excluded specific property.

Property includes money, goods, things in action, land, and every description of property wherever situated, as well as obligations and every description of interest, whether present or future, vested or contingent, arising out of or incidental to property.

Bankruptcy debts are defined as any debt or liability to which the debtor is subject at the commencement of the Commencement.

The definition is extended to include any debt or liability that the bankrupt may become subject to after the date of commencement by reaCommencementbligation incurred before the bankruptcy. Some bankruptcy debts will survive bankruptcy. Pre-bankruptcy interest is a bankruptcy debt.

A bankruptcy order is an order by the court that the individual debtor be adjudged bankrupt.