Is bankruptcy your best option?
If you are thinking of declaring bankruptcy there are many factors to consider. Have you sought help and advice regarding your outstanding debt? Are you aware of the various government organisations and charities that can go through your best options, and the consequences accordingly.
Thinking of going bankrupt? declare help by seeking independent advice from the Citzens Advice Bureau, National Debt Helpline on 0808 808 4000 or contact the Consumer Credit Counselling Service. If you do decide to go ahead with the bankruptcy you will need to fill out a debtor’s petition form, available at https://www.insolvencydirect.gov.uk/isolv/ (note you have to register with the site first). The petition must be taken to your nearest County Court (make sure that they have bankruptcy jurisdiction) and a fee of £120 - £150 pounds must be payed when submitting the bankruptcy petition (nOte that this fee can be waived under certain circumstances, such being on income support), but a further fee of £345 to the Official Receiver must be paid also, and this cannot be waived. Please note that married couples where both are applying for bankruptcy must each pay these fees. Business partners must also pay fees separately unless applying for joint bankruptcy.
What happens then?
An Official Receiver is appointed as trustee of your bankruptcy affairs and to protect your assets. An Insolvency Practitioner is appointed to sell your assets in order to pay off your creditors.Once the bankruptcy proceedings begin You must provide full details of all income, debts and assets to the court appointed Official Receiver within 21 days. You may also have to explain the circumstances of your debts to the Court to satisfy that you have not been reckless financially. Any assets you have must then be handed over to the Official Receiver and you must adhere to the strict rules laid out by the Courts. You will not be able to use and bank or building society account, borrow any money above £250 without first informing you are bankrupt. At this stage you become free from pursuit of said creditors for your outstanding debts. The bankruptcy order will last usually between 1 and 3 years, but can last longer if the Courts feel that the Bankrupt party has been dishonest or reckless in running up their debt