In the UK, bankruptcy (in a strict legal sense) relates only to individuals and partnerships.
Companies and other corporations enter into differently-named legal insolvency procedures: liquidation, administration and administrative receivership.

However, the term ‘bankruptcy’ is often used (incorrectly) when referring to companies in the media and in general conversation.

A Trustee in bankruptcy must be either an Official Receiver (a civil servant) or a licensed insolvency practitioner.

The costs of Bankruptcy will vary for each individual. Some costs are common to all bankruptcies, and some costs will depend directly upon the the level of individuals assets.

Following the introduction of the Enterprise Act 2002, a UK bankruptcy will now normally last no longer than 12 months and may be less, if the Official Receiver files in Court a certificate that his investigations are complete.

It is expected that the UK Government’s liberalisation of the UK bankruptcy regime will increase the number of bankruptcy cases; initial Government statistics appear to bear this out. It remains to be seen whether the legislation will need reviewing if this remains the case. The Government are keen to stress that dishonest, or culpable, Bankrupt’s will feel the full weight of the law through the newly introduced Bankruptcy Restriction Order’s or BRO’s.

There were 20,461 individual insolvencies in England and Wales in the fourth quarter of 2005 on a seasonally adjusted basis. This was an increase of 15.0% on the previous quarter and an increase of 36.8% on the same period a year ago.

This was made up of 13,501 bankruptcies, an increase of 10.9% on the previous quarter and an increase of 37.6% on the corresponding quarter of the previous year, and 6,960 Individual Voluntary Arrangements (IVAs), an increase of 23.9% on the previous quarter and an increase of 117.1% on the corresponding quarter of the previous year.

In Scotland the bankruptcy process is referred to as Sequestration.