Your Guide on the Process of Bankruptcy

This debt solution for residents of in England, Wales and Northern Ireland only

If determined that bankruptcy is the best solution to your debt problems, we will give you pertinent advice on the process of a bankruptcy application.

It is undeniable that bankruptcy is not a suitable means for everyone who has debt problems. There are other alternatives that you need to explore and consider. We can help you determine the best debt solution that suits your current financial circumstances.

Moreover, the bankruptcy process differs depending on where you live in the UK. If you’re living in Scotland, bankruptcy is in the form of sequestration.

Applying for Bankruptcy

Bankruptcy suits you if you can’t make any payments to your debts in a reasonable period. The assets you have such as your car or home are normally sold to cover your debts. This can mean that you will still owe some more debts if your assets cannot cover your entire debts included in your bankruptcy.

You can file for bankruptcy online and paying the bankruptcy costs. It will then be administered by the Insolvency Service Officer also known as the Official Receiver or OR together with the case examiners.

Once your application is approved, most of your debts will be written off. Creditors of these can no longer recover the debts by obtaining court action against you.

The OR will contact your creditors and inform them about your bankruptcy. When this happens, your creditors or debt collectors will no longer contact you to collect debt payments. If they do, you have to inform your official receiver about it.

Going on bankrupt is difficult since you’ll be restricted in several ways. Besides, your assets are in great risks from being seized or sold off.

Debts Included in the Bankruptcy Application

Your bankruptcy application can include the following debts:

If you have included any joint debts, the person you took the debts jointly will be accountable for paying the outstanding debts in full.

Forms You Need for Bankruptcy Application

Previously, going bankrupt involved completing two document forms, and taking these to the court. In England and Wales, this method evolved in 2016. In recent times, you can now apply for bankruptcy online. If you reside in Northern Ireland you can file through the Insolvency Service Public Portal.

You’ll still have to supply the details stipulated in the old paper forms, but you can fill it up in your own phase. It can be easier to complete the form since it contains a guide on the information that you need to suffice.

Declaring Bankruptcy

Before you consider to file for bankruptcy, contact us so we can help you determine if its the right solution for you. Once you found out, you can access an online application in www.gov.uk and pay the costs. 

Free Bankruptcy Help

Petitioning a bankruptcy is not something you can decide without weighing your circumstances. Before you apply, you have to seek free debt advice. We can help you determine whether bankruptcy is right for you. Check out our free debt advice tool and find out more.