understanding financial jargon
Occurs when an individual is deemed insolvent by a County Court under the provisions of the UK Insolvency Act 1986. A bankruptcy petition can be initiated by the individual in financial distress or his creditors. Once granted, it remains in force for one year. Most lenders have a clause in their mortgage conditions which provides a right to possession on bankruptcy, though this is seldom pursued unless the account goes into arrears. A mortgage lender can require mortgage payments to be made direct by the bankrupt person rather than via an Official Receiver or Trustee in Bankruptcy.
What to do if you need more help
If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.
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