How To Declare Bankruptcy

If you're struggling with debts contact Debt Free Direct on 0800 298 8836.

The bankruptcy process starts when either you or your creditors declare your bankruptcy by filing a Bankruptcy Petition.

To file a Bankruptcy Petition you'll need to contact your local court who will give you the details of your nearest county court that deals with bankruptcy hearings. When you take your petition and statement of affairs to court you may have to pay two fees; a Court Fee and the Official Receiver's deposit.

The deposit, currently £450, towards the costs of administering your bankruptcy is payable in all cases however a £150 court fee may be waived by the court if, for example, you are on Income Support. If you are a married couple and you are both applying for bankruptcy, you will each have to pay separate fees.

Once your petition is filed, you will be informed of a date for your bankruptcy hearing to take place.

If a bankruptcy order is made, an officer of the court called an Official Receiver will be appointed to administer the initial stages of your bankruptcy. The Official Receiver may require you to attend a formal meeting to determine everyone you owe money to, what assets you own, how much you earn and what your household spending is. They will also discuss what caused you bankruptcy and may investigate your conduct if they feel you are accountable through irresponsible behaviour.

The facts are reported to the Court and if there is a ruling that behaviour was irresponsible or fraudulent then a bankruptcy Restriction Order may be made. This may impose restrictions on you for a period of 2 to 15 years.

Not all hearings end with a bankruptcy order being granted, other outcomes can include: a delay, while seeking further information; a refusal to grant the petition or the appointment of an Insolvency Practitioner (IP) to set up an Individual Voluntary Arrangement (IVA) as an alternative solution.

View Debt Free Direct's 'Alternatives to Bankruptcy' video to learn more, http://www.youtube.com/watch?v=GKm0nFedNbw

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