What is Voluntary Bankruptcy?

This Debt Solution Applies to England, Wales and Northern Ireland

Voluntary bankruptcy refers to debtors petition as opposed to your creditor or lender applying for your bankruptcy.

Bankruptcy is a form of insolvency and a type of debt solution. It is designed for people who cannot repay their debts within a reasonable period. Once you enter bankruptcy, your properties or assets are sold to compensate your creditors and pay off your debts.

This means that bankruptcy may be the best choice for you if your assets can cover debt payments along with your up to date debt payments.

Moreover, applying for bankruptcy is known as petitioning for bankruptcy. If you consider making yourself bankrupt, you need to complete the bankruptcy forms online and pay the fees or any associated costs.

Can someone petition to make me bankrupt?

Your creditors or lender can make you bankrupt to recover the debt. Before they can petition for your bankruptcy, they’ll have to issue a statutory demand. It a document that serves as a warning. It tells you that bankruptcy proceedings will be in place if you do not pay off your debt or arrange for a payment plan. Usually, you’ll personally get it via delivery.

After 21 days of issuing the statutory demand, your creditor can start for bankruptcy proceedings against you. So, once you get this demand, you have to contact your creditor and negotiate for a repayment plan or you can contact us so we can advise you on how to deal with it.

On the contrary, your creditor can apply for your bankruptcy without sending a statutory demand if:

  • You’re on an IVA or Individual Voluntary Arrangement that failed
  • Your creditor utilizes bailiffs or enforcement agents to recover the debt but did not find any valuable belongings to sell

Either you petition to make yourself bankrupt or your creditor, the process is the same. But when creditors apply for your bankruptcy they’ll pay for the costs and add it on your debt.

Bankruptcy Advice and Help

If you are thinking of going bankrupt, you need to consider FREE DEBT HELP. Our debt experts can give you the best debt management plan to get rid of your debt in no time. Bankruptcy may not be the best option for you. Besides, you have to understand the risks associated when you consider voluntary bankruptcy. We can help you evaluate your circumstances and determine the best debt solution for you.

Should you wish to speak via phone, call us on  0800 193 1024. You can also use or debt advice tool for free and impartial debt advice.

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