Bankruptcy FAQs

In this section we have answered the bankruptcy questions that we get asked most often. If you have a question that is not answered below or if you'd simply like more information about bankruptcy then please get in touch with us by clicking the link below and completing the contact form:

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Bankruptcy Questions

How Does the Bankruptcy Process Work?
How Much Does it Cost to Go Bankrupt?
Where is the Bankruptcy Order Made?
What Happens During the Bankruptcy Hearing?
Who is Responsible for Dealing with Bankruptcy Cases?
What do I Have to do if I'm Made Bankrupt?
What are the Effects of Bankruptcy?
How Will Bankruptcy Affect My Credit Rating?

1. How Does the Bankruptcy Process Work?

If you want to declare yourself bankrupt you have to start the process by filing a Bankruptcy Petition (Debtor's Petition).

Or your creditors can file a Bankruptcy Petition Creditor's Petition) against you if you owe them more than £750.

Once you the bankruptcy petition has been filed, a court date will be set for the initial hearing to see if a Bankruptcy Order should be made. Once a Bankruptcy Order has been made, you will be declared bankrupt.

2. How Much Does it Cost to Go Bankrupt?

You will probably have to pay three different fees to go bankrupt. These are:

The Court Fee of £120. Sometimes this fee is waived, for instance if you are on Income Support.
The Official Receiver's Deposit of £250
The fee of £7 to swear the statement of affairs. If your bankruptcy hearing is taking place in a county court then you won't have to pay this fee. However, if it is in the High Court or in front of a solicitor, you will have to pay.

3. Where is the Bankruptcy Order Made?

The Bankruptcy Order is made at the same court where the Bankruptcy Petition was filed. Bankruptcy Petitions are normally filed at a county court near to where you live and work or at the High Court.

4. What Happens During the Bankruptcy Hearing?

At this hearing one of the following things will happen:

The bankruptcy proceedings will be delayed because more information is needed for the court to be able to decide whether to issue a Bankruptcy Order.
The Bankruptcy Petition that has been filed will be dismissed
An Insolvency Practitioner will be appointed to set up an Individual Voluntary Arrangement instead.
A Bankruptcy Order will be made. You will be declared bankrupt the moment that this order has been made.

5. Who is Responsible For Dealing With Bankruptcy Cases?

The Official Receiver, who is a civil servant and officer of the court, is responsible for the administration of bankruptcies. The Official Receiver usually acts as a trustee of the bankrupt's estate and is responsible for investigating the bankrupt's financial affairs.

6. What do I Have to do if I'm Made Bankrupt?

Once a Bankruptcy Order has been made, you are obliged to give the Official receiver information about your financial affairs. This includes handing over your assets, bank statements and insurance policies.

If you are made bankrupt, you are not allowed to obtain credit of over £500 without disclosing the fact that you are bankrupt.

You are not allowed to continue using bank or building society accounts.

You must not make any direct payments to your creditors.

You might have to go to court to explain why you are in debt.

7. What are the Effects of Bankruptcy?

The Trustee controls all of your assets, including your home
You cannot obtain credit of more than £500 without disclosing your bankrupt status
You can only conduct business in the name in which you were made bankrupt
You cannot be involved in forming, managing or promoting a company without the court's permission.
There are certain public offices that you cannot hold.

These restrictions are ended when the bankruptcy is terminated

8. How Will Bankruptcy Affect My Credit Rating?

The fact that you were made bankrupt will be registered with credit reference agencies and will stay or your file for at least six years. After this period you might still have to declare that you were bankrupt, especially if you apply for a mortgage.

To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.