One Advice believes that before you declare bankruptcy you should seek information about bankruptcy alternatives (such as an IVA) and ensure that these options have been fully explored.
Our One Advice bankruptcy advisors can offer you personalised advice about the bankruptcy procedure and the risks involved. For ethical advice about declaring bankruptcy, as well as information about our other debt solutions, please call our bankruptcy advisors on freephone 0800 048 1752 or fill in the Quick Enquiry Form and we will call you back.
Declaring bankruptcy is not an easy way to escape your debt problems. It is important that you fully research how bankruptcy works, as declaring bankruptcy is never an easy option out of debt, and there are long term implications which cannot be avoided.
Anyone can declare themselves bankrupt as long as they are a resident of the UK and have over £750 worth of debts, which were incurred in the UK. You will have to appear in Court in person so that you can present your Bankruptcy application documents and pay a court fee. It is possible that the Court fees can be reduced if you are on certain benefits.
You can be declared bankrupt without your permission as creditors can take you to court for as little as a £750 worth of debt. For further details about the process of declaring yourself bankrupt and what to do if the creditors are filing bankruptcy against you, please see our Bankruptcy Process page.
1: Contact your local court.
You will have to present your Bankruptcy application to your local County Court. The details about your nearest court can be found in your local telephone book and online via the Court Finder web site:
http://www.hmcourts-service.gov.uk/HMCSCourtFinder/
If you live in London then you may have to present your Bankruptcy application to the Royal Court of Justice.
2: Get the relevant paperwork.
When you contact your court you will have to tell them that you are considering declaring yourself bankrupt and check that you are contacting the right court for your home address.
You will need two documents which the court can provide you free of charge, these are:
3: Costs of Bankruptcy.
Ask the Court to confirm the exact fee that you will be paying to declare yourself bankrupt and enquire about any relevant discounts if you are in receipt of benefits.
Obviously you are declaring bankruptcy because you are struggling with financial problems but, unfortunately, declaring yourself bankrupt is not free. The Court fee is currently:
If both you and your partner are applying for bankruptcy, you will both have to pay Court Fees. The same ruling applied if you were in business as a partnership.
The above bankruptcy costs were correct at time of writing, but these are subject to change. Please contact One Advice directly for the latest bankruptcy advice.
4: Confirm an appointment with the Court.
Check what procedure your local County Court have as you might need to book an appointment quite far in advance. With some, such as the High Court, you may be allowed to turn up on the day without making a prior appointment.
5: Present your Bankruptcy Petition and Statement of Affairs document at Court.
Both of these documents are quite lengthy and it is important that all the sections are filled out correctly. One Advice do offer a Bankruptcy Service which will take your through the process of declaring bankruptcy. Please contact us on 0800 048 1752 for information.
You will have to take the original forms and two photocopied documents to Court, along with your Bankruptcy court fee.
When you arrive at Court you will have to meet the Court Clerk who will take your fee, ensure that the documents have been completed correctly and will be your signature witness on the Petition Document.
You will have a meeting with the District Judge who will decide if you are insolvent and whether bankruptcy is the right option for you. If the Judge agrees with your Petition then they will often declare you bankrupt on the same day.
6: Meeting with the Official Receiver.
You may be asked to have a meeting with an Official Receiver, who is a civil servant or an officer of the court. They will take a more detailed look at your bankruptcy application and will decide on how to deal with it. They have the ability to decide how long your bankruptcy order should last, it is normally a 12 month period but this can be lengthened or shortened dependant on your circumstances.
They will also decide whether to sell your assets and if you can afford to make a monthly contribution to your debt via an Income Payments Order.
If you feel as though you have unmanageable debt but don’t want to go ahead with declaring bankruptcy because of bankruptcy disadvantages, then there could be ways that you can do this. There alternatives to declaring bankruptcy which you may want to consider, such as a debt management plan or an IVA.
Whatever your financial situation, One Advice can help to find the right debt solution for your debt problems. Call our bankruptcy advisors on 0800 048 1752 or take fill out the Quick Enquiry Form for a callback.