24 Hour Loans glossary of financial terms

Bankruptcy Order

A bankruptcy order is made by a court against a person that has debt problems. An order can be made by the direct request of the individual in question or may be made by the people/businesses to which the money is owed. The initial process is known as a bankruptcy petition ? it can lead to a bankruptcy order even if you don?t agree to it. Once the order has been made then your finances are taken over by a court approved trustee. This trustee may be a qualified insolvency specialist or the Official Receiver.

Your trustee then takes an in-depth look at our financial situation and your creditors can?t approach you direct from now on. The order allows your trustee to work out what, if any, assets you have, who you owe money to and how large your debts are. A plan will then be drawn up under official guidelines to spread any of your assets out across the people to whom you owe money.