| A situation where an individual is incapable of settling his/her debts and has been served a bankruptcy order by a court. The petition can either be filed by the individual concerned, or by his/her creditors. An inquiry into the debtor's affairs is made by the official receiver and the debtor's assets are realised and distributed among creditors. Personal pension assets are not included under the bankrupt's distributable assets for petitions made after May 29th 2000, unless the bankrupt has deliberately put assets into a personal pension specifically to avoid paying creditors. Money in occupational pensions schemes is also excluded. The equivalent process for companies is 'liquidation'.
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