UK councils have been declaring bankruptcy, with seven local councils issuing Section 114 notices since 2018.

The bankruptcies follow extreme budget cuts that have seen services pared back to their bare minimum, meaning local councils struggling to provide adequate social care, transport, education and housing to their constituents.

But how does a local council go bankrupt? What happens to the services that they provide to residents? And what happens when a local council misuses taxpayer's money?

This is Decomplicated.