How to File For Bankruptcy
- See also:
- Bankruptcy Overview
- Bankruptcy FAQs
- Disadvantages of Bankruptcy
- How to File for Bankruptcy
- How to Avoid Bankruptcy
- The Effects of Bankruptcy
- UK Bankruptcy Law
- Alternatives to Bankruptcy
In this section we will discuss the steps involved in filing for bankruptcy. If you would like any further information or advice on how to declare yourself bankrupt, then please:
Call us on free phone 0800 138 5445 or fill in the contact form on the right hand side of this page.
The Bankruptcy Process
Bankruptcy Petition
If you want to declare yourself bankrupt you have to start the process by filing a Bankruptcy Petition. If you file for bankruptcy yourself, the bankruptcy petition is called the Debtor's Petition.
If you want to file for bankruptcy you should contact your local court. They will give you the details of your nearest county court that deals with bankruptcy hearings. You can find the contact details for your local court by visiting http://www.courtservice.gov.uk.
If you are being forced to go bankrupt by your creditors then they will file the Bankruptcy Petition. This is called a Creditor's Petition and it can only be filed by people to whom you owe more than £750.
When you file the petition for bankruptcy you will also have to pay £370 into court. This amount covers the Court Fee and the Official Receiver's deposit. If a Bankruptcy Order is not made by your local court then the deposit will be refundable, but the Court Issue Fee is not.
Do be aware that filing a bankruptcy petition does not prevent your creditors from contacting or trying to sue you.
Hearing of the Bankruptcy Petition
Once you have filed your bankruptcy petition, a court date will be set for the initial hearing. This hearing is called the Hearing of the Bankruptcy Petition. At this hearing one of the following things will happen:
- The bankruptcy proceedings will be delayed because more information is needed for the court to be able to decide whether to issue a Bankruptcy Order.
- The Bankruptcy Petition that has been filed will be dismissed.
- An Insolvency Practitioner will be appointed to set up an Individual Voluntary Arrangement instead.
- A Bankruptcy Order will be made. You will be declared bankrupt the moment that this order has been made.
Bankruptcy Order
Once a Bankruptcy Order has been made then an Official Receiver is nominated to look after your affairs. The Official receiver is a civil servant and an officer of the Court. If you want to declare yourself bankrupt then you will be asked to attend an initial meeting with the Official Receiver. During that meeting you will discuss the reasons why you are filing for bankruptcy and the Official Receiver will assess your assets and liabilities. A trustee will then be appointed unless you do not have any assets.
The trustee is responsible for selling any property that you own and splitting the proceeds from the sale amongst your creditors. After this, any debt that you owed your creditors will be legally struck out and they will be forbidden from trying to collect any more money from you.
You will be automatically discharged from bankruptcy normally one year from the date of the Bankruptcy Order.
To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.