The Bankruptcy process
Below is a breakdown of the process that you will go through to become bankrupt. We are able to guide you through everything easily so we can make sure you are fully aware of the consequences of bankruptcy. A judge will ask these questions which is why we are there to help you through the day.
Filing for bankruptcy - Voluntary Petition
In the UK you are able to petition for your own bankruptcy by presenting a Debtors Petition at the High Court in London or at a Local Court near you. The key thing when you file for bankruptcy is being able to prove you can no longer pay your debts.
Bankruptcy forms
You will need to complete 2 forms when filing for bankruptcy. Both forms can be found on our Downloads area or via the link next to the following:
Form 6.27 - The bankruptcy petition
Form 6.28 - The statement of affairs
The downside of filing for bankruptcy is you have to pay a fee to do so.
Deposit - £360
Court Fee - £150 (this is means tested so you may not have to pay it)
Statement of Affairs swearing fee if in High Court or with a solicitor - £7
Once you have completed your forms and got the money to petition, book an appointment with your Local Court to file them at court.
Filing for bankruptcy - Creditors Petition
If one of your creditors is due £750 or more and is unsecured they are able to submit a creditors petition to start the bankruptcy process. If you are being threatened by a creditor and you don't want to go bankrupt contact us immediately to see how we can help you.
Official Receiver
An Official Receiver is an officer of the court and works for the Insolvency Service. Once you have filed your petition you will be contacted by the Official Receiver of your bankruptcy.
The Official Receiver looks after your bankruptcy and protects your assets and investigates your conduct and affairs. They will look after your estate until a Trustee is appointed.
They will start investigating your conduct and affairs by:
Reviewing your Statement of Affairs
Arranging an interview with you
Liasing with the Trustee
Any other means for them to investigate within their powers
This isn't as bad as it sounds so please read the positive comments that some of our clients have said regarding The Official Receiver on our Testimonials page.
You will be contacted by the Official Receiver shortly after petitioning to arrange either a telephone interview or a face to face meetingr.
Your interview may be conducted over the phone unless it is complex where you will be asked to attend the Official Receivers office. These offices are throughout the UK and you will generally be assigned an office nearest to the court you were made bankrupt.
Bankruptcy Trustee
The Trustee in bankruptcy is either:
The Official Receiver administering the bankruptcy
A Licensed Insolvency Practitioner
Generally the appointment depends on whether or not there is much value in your estate or if it is complex. Whoever is appointed they have the right to sell any assets you may have and distribute the funds to your creditors.
They do have to follow insolvency law and they are expected to follow ethical guidelines. If you think the trustee is not acting within these guidelines then you can complain to the licensing body. As with most things with Bankruptcy, do not worry we can advise you accordingly of the rights and wrongs.