Jane and her husband, Ian, own a sheep farm. Their business is Essay

Jane and her husband, Ian, own a sheep farm. Their business is struggling financially. Jane and Ian be receiving a number of final demands for bills that they - Essay ExampleThis situation is very difficult as it can widen to legal suit against them by the creditors, inability to go out the basic needs, and even embarrassment. Therefore, it is critical that the affected parties reserve legal alternatives to the situation, as well as fundamental go up to it.The most realistic legal approach to Jane and Ian is to file for bankruptcy. Bankruptcy is a legal proceeding that allows people who can non meet their financial obligations to have alternatives to meet these obligations (Keay and Walton, 2008, p. 14). Basically, it is one of the ways of dealing with debts that an idiosyncratic is unable to pay. An idiosyncratic who has been declared bankrupt is subject to plastered restrictions and is freed from his or her debts after a given period of time. Under the UK laws, bankruptcy i s governed by the Insolvency Act 1986 and the Insolvency Rules 1986 (Keay and Walton, 2008, p. 17). An individual can be made bankrupt through a court order after presenting a bankruptcy petition. This petition may be presented by an individual on the ground that he or she cannot afford to pay debts or by a creditor against the debtor.Considering Jane and Ians situation, applying for bankruptcy would be the most preferable option of overcoming their problem. As noted in the case of Re Cheyne Finance plc 2007, bankruptcy encompasses the consideration that an individual cannot afford to pay debts as they fall due and also the consideration that this individual may not be able to pay future bills (Keay and Walton, 2008, p. 101). This interpretation shows that if Jane and Ian file for insolvency, they will be covered against menstruum and future debts. Before applying for bankruptcy, they should be aware of the restrictions that they will be subjected to they cannot raise credit witho ut informing the creditor that they are bankrupt and they have to give information to their trustee and cooperate with