Bankruptcy – how to apply :Cross Stitch – Money, tax and benefits
If bankruptcy is the right way to deal with your debt problem, you have to petition (apply to) the court to issue a bankruptcy order. Find out which courts deal with petitions, the forms and fees they need and where to go for help and advice.
Only a court can declare you bankrupt by issuing a bankruptcy order against you. You can petition the court yourself, or your creditors (people you owe money to) can if you owe them more than £750 and that amount is unsecured. If made bankrupt, you can lose your home and/or business.
Get free debt advice from your local Citizens Advice Bureau or the National Debtline to make sure bankruptcy is the best way to deal with your debts. An independent financial adviser can also help you, but they may charge a fee for their services.
The process for becoming bankrupt is different in Scotland and Northern Ireland.
As part of your bankruptcy petition, you will need to complete the following bankruptcy forms:
- Debtor’s Bankruptcy Petition
- Statement of Affairs, Debtor’s Petition
You should give the reasons why you are applying for bankruptcy in the Debtor’s Bankruptcy Petition.
List all your assets (cash, property, shares etc) and debts, including the names and addresses of your creditors, in the Statement of Affairs.
You need to print and sign the forms and give the originals and usually two copies to the court.
The court will not consider your bankruptcy petition if you don’t have the originals and enough copies. For help completing the bankruptcy forms, contact your local Citizens Advice Bureau or the National Debtline for free advice. An independent financial adviser can also help you, but they may charge a fee.
The court will not accept personal cheques, but you can pay the fees:
- in cash
- in postal orders
- by building society, bank or solicitor’s cheque made payable to HM Courts & Tribunals Service
You should contact your nearest bankruptcy court to arrange a date and time to go to court with your forms and fees. When the court considers your bankruptcy petition it can:
- issue a bankruptcy order making you bankrupt
- delay your case – the court may need further information
- reject your bankruptcy petition
- reject your bankruptcy petition and order an alternative to bankruptcy
If the court rejects your petition, the bankruptcy fees will not be repaid to you. However, the court may agree to use them towards the costs of an alternative. You should get independent financial or legal advice if your bankruptcy petition is rejected.