Bankruptcy Advice - Going bankrupt?

Bankruptcy Advice

A court makes a bankruptcy order only after a bankruptcy petition has been presented either by:

the debtor themselves (debtor's petition); or
by one or more unsecured creditors who are owed at least £750 (creditor's petition).
a supervisor of an individual voluntary arrangement may also present a petition if they believe they have grounds.

A bankruptcy order can still be made, even if the debtor refuses to acknowledge the proceedings or refuses to agree to them.

Once the bankruptcy order has been made the process involved is the same whoever issued the petition.

Issuing a petition for your own bankruptcy?

To petition for your own bankruptcy you must be able to show that you are unable to pay your debts.
However before making any decision about making yourself bankrupt it is essential that you seek independent advice. For this you may approach an insolvency practitioner or one of many free debt advice providers such as your local Citizens Advice Bureau. If you have carefully considered your circumstances and still wish to proceed, you should contact your local County Court (or the High Court if you live in London).

The staff at your local County Court are happy to help people complete the paperwork needed to present a bankruptcy petition. You will be required to make a statement of your income and your average monthly expenditure so you should ensure that you have prepared this in advance of attending the court.

The court will also require information about all the people to whom you owe money (your creditors). You should include their full name or trading name, their address, the amount you believe you owe or the amount they have demanded from you if this is different, and any reference numbers that may be relevant.

You will be charged £140 in court fees (unless there are exceptional circumstances) and a further £310 for the administration of your bankruptcy.

The court may hear your petition may on the same day that you present it, or it may arrange a later date when it will be considered.

How a bankruptcy petition may be made against you

If one or more of your creditors are owed £750 or more they may issue a bankruptcy petition against you.

Usually a formal demand for payment will be made by your creditors prior to issuing a bankruptcy petition. This may take the form of a final written demand or a statutory demand. If a statutory demand is made you must respond within 18 days. Once 21 days has elapsed from the date of the statutory demand being issued the creditor may issue a petition without additional warning.

What happens once a bankruptcy order is made?

Usually the Official Receiver (see glossary) will deal with your affairs once a bankruptcy order has been made against you.

Within 21 days, you must provide the Official Receiver with all information they require regarding your financial affairs - including a list of all of your assets and the amount and details of all your debts.
Usually, but not always, you will be required to attend the office of the Official Receiver soon after the bankruptcy order has been made.

The Official Receiver is a civil servant who is required to investigate the financial affairs of all individuals who are made bankrupt.

A licensed insolvency practitioner may be appointed trustee in place of the Official Receiver. Like the Official Receiver, they are required to deal with the disposal of your assets and the making of payments to creditors.

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