Filing for Bankruptcy

If you want to declare yourself bankrupt you have to start the process by filing a Bankruptcy Petition. If you file for bankruptcy yourself, the bankruptcy petition is called the Debtor's Petition. This is filed at your local county court, where your bankruptcy hearing will be heard. If you owe a creditor more than £750, they can also petition for your bankruptcy.

When you file the petition for bankruptcy you will also have to pay £370 into court. This amount covers the Court Fee and the Official Receiver's deposit. If a Bankruptcy Order is not made by your local court then the deposit will be refundable, but the Court Issue Fee is not.

Bankruptcy Hearing

After your petition has been filed, the court will set a date for the initial hearing, or Hearing of the Bankruptcy Petition. The result of this hearing will be one of the following:

• Bankruptcy proceedings will be delayed pending additional information
• The petition will be dismissed
• An Insolvency Practitioner will be appointed to set up an Individual Voluntary Arrangement instead
• A Bankruptcy Order will be made.

Bankruptcy Order

After the Bankruptcy Order has been granted, an Official Receiver will be appointed to look after your affairs. The official receiver is a civil servant and an officer of the Court. If you declare yourself bankrupt, you will need to attend a meeting with the Official Receiver in which you will give the reasons for filing for bankruptcy. Unless you have no assets, a trustee will be appointed at this time.
The trustee is responsible for selling any property that you own and splitting the proceeds from the sale amongst your creditors. After this, any debt owed your creditors will be written off and they will be forbidden from trying to collect any more money from you.
You will be automatically discharged from bankruptcy one year from the date of the Bankruptcy Order.