Bankruptcy Petitions

Bankruptcy is the inability of an individual to pay their debts as they fall due. A bankruptcy petition may be filed by creditors against a debtor in order to recoup some portion of the amount that they have owed. This kind of bankruptcy is involuntarily for the debtor, being petitioned by their creditors. However, the debtor may also petition for their own bankruptcy.

Bankruptcy Petitions are normally presented at either the High Court in London, or at a local County Court near to where you live or work.

Creditors can present a petition against you even if you are not in England or Wales at that time, providing that you normally live in England or Wales or have a recent residential or business connection with England or Wales.

If you wish to petition for your own bankruptcy, you should contact your local court, who will provide you with the name, address and telephone number of the local County Court that deals with bankruptcy.

When the bankruptcy petition has been presented to the court, it will either be heard immediately, or the court will arrange for it to be heard in the future to allow time to consider the petition.

At the bankruptcy hearing, the court can do one of four things:

1) Stay, or delay, the proceedings in order to acquire additional information before making the bankruptcy order,
2) Dismiss the petition,
3) Appoint an Insolvency Practitioner if the court thinks an Individual Voluntary Arrangement (IVA) would be more appropriate,
4) Make a bankruptcy order. Your bankruptcy will begin the moment the bankruptcy order is made.