ABSTRACT
This chapter looks at personal insolvency. Personal insolvency and in particular any subsequent bankruptcy have historically been the cause of historical stigma. In modern times, more streamlined personal insolvency processes have been introduced which mean that in many cases personal insolvency, although not an ideal situation, does not have to be a permanent blight on an individual’s life chances. Even with these changes, personal insolvency remains highly significant for solicitors, directors of companies, and partners and will often mean that the insolvent individual is unable to continue operating in business or practice in the same way for a period of time. An individual who is bankrupt cannot be a director of a company unless they have been granted permission by a court. Bankrupt individuals who continue as directors commit a criminal offence and can face two years’ imprisonment and a fine.
