- A Bankruptcy Petition is lodged with the Court.
- The Petition has the effect of freezing the assets of the individual. Any attempt at transferring assets to a third party after this time will be void.
- If the Debtor has lodged the Petition, the Court may make an 'Interim Order' to organise a list of Creditors, etc.
- The Court may make a Bankruptcy Order declaring the Debtor as bankrupt. At the same time, someone may be appointed to deal with the Debtors' assets.
- The person appointed is given the power to administer, realise and sell the Debtors' assets.
- The monies obtained are then paid to the Creditors in an Order of Priority.
- Creditors have three years to deal with bankrupt's home.
- The Bankrupt is automatically discharged from bankruptcy after one year.
- Some bankrupts may continue to pay off debts even after discharge and some may face restrictions for up to 15 years. For example, Bankruptcy Restriction Orders (BROs) will bar individuals from obtaining credit without disclosing their status, trading under a different name or holding a company directorship for anything up to 15 years.