The Process of Bankruptcy - 6 Essential Modules

Introduction

The process of bankruptcy can be, and ought to be, simple, smooth and effective for creditors faced with insolvent debtors who are unable to pay their debts as and when they fall due. However, unless the technical requirements of the Insolvency Act 1986 and the Insolvency Rules 2016 are navigated and applied with care, the process of bankruptcy for a creditor can risk failure.

The aim of this introductory six-part series is to assist all those professionals who work within the field of debt recovery and enforcement and newly qualified insolvency practitioners and lawyers specialising in insolvency work (and practising in England and Wales) in traversing the process of bankruptcy with success. It will provide a thorough grounding in the key components of the bankruptcy process with an emphasis on practical and tactical tips and considerations to help the professional maximise the effectiveness and value of the bankruptcy process for their clients.

What You Will Learn

The modules will cover the following:

Module 1 - What is Bankruptcy?

This module will consider the following:

• An overview and outline of the key legislation, rules and practice directions that underpin the bankruptcy process:
• The Insolvency Act 1986
• The Insolvency Rules 2016
• Insolvency Proceedings Practice Direction 2020
• The pros and cons of the bankruptcy process
• When the process should and should not be utilised

Module 2 - Considering the Bankruptcy Process

This module will consider the following:

• The grounds of creditors’ petitions
• The debtors against whom the Court may make a bankruptcy order
• The meaning of the debtor’s inability to pay
• What needs to be specifically considered, reviewed and understood by a creditor before the bankruptcy process is commenced

Module 3 - Starting the Bankruptcy Process

This module will consider the following:

• The role of the statutory demand
• The contents of a statutory demand
• How it ought to be drafted
• How it ought to be served (including an understanding of issues that can arise in relation to drafting and service and how those issues could be considered and dealt with)
• Applications for setting aside statutory demands

Module 4 - Bringing the Court into Play

This module will consider the following:

• The role of the bankruptcy petition
• The contents of a bankruptcy petition
• How it ought to be drafted
• How it ought to be served (including an understanding of issues that can arise in relation to drafting and service and how those issues could be considered and dealt with)
• Amendment of petitions, the procedure for presentation of the petition and also the question of which Court the petition ought to be presented in
• The role of the debtor’s notice of opposition and the issue of transfer of petitions to a specialist Court

Module 5 - The Petition Hearing

This module will consider the following:

• What happens, and what can happen, at a bankruptcy petition hearing
• The key documents that the Court needs to see, including the list of creditors and the certificate of continuing debt
• The role and effect of Section 271 of the Insolvency Act 1986, the different types of costs orders and the contents of bankruptcy orders

Module 6 - Post Bankruptcy Implications

This module will consider the following:

• The role of the Trustee in Bankruptcy in investigating the bankrupt’s affairs as against the bankrupt’s duties in a bankruptcy
• The commencement and duration of a bankruptcy, discharge, applications for annulment, priority of payments (including costs and expenses) and creditors’ claims and distributions in a bankruptcy
• The meaning of the bankruptcy estate, the impact on proceedings, remedies and creditors as a result of bankruptcy and the effect of bankruptcy more generally

This pre-recorded webinar will be available to view from Friday 28th August 2026

Alternatively, you can gain access to this webinar and 2,300+ others via the MBL Webinar Subscription. Please email webinarsubscription@mblseminars.com for more details.