Bankruptcy

Bankruptcy may be an option for people with levels of debt that are so high there is very little chance of them being able to pay the debt back. It may also be that the person considering the bankruptcy has levels of debt so high in comparison to their assets that they feel they have nothing to lose.

You will need a bankruptcy petition & Statement of affairs form completed to take to your local court that carries out this procedure. If you are able to see the judge without having to return on a specific date, and he is satisfied with the petition, he will declare you bankrupt immediately.

The next step is to meet the Official Receiver’s office who goes through your paperwork with you to establish the sequence of events that led to your bankruptcy and work out a repayment schedule called an Income Payment Order based on what you can afford. This can last up to three years even after you have been discharged.

The actual procedure varies from Court to Court but on arrival you will normally proceed to the court office. Here the counter clerk will check that your petition and statement of affairs are completed properly. He will also take your fee. If you are entitled to a remitted fee, make certain that you have your up to date letter of entitlement and your completed EX160 or you will be needed to pay the full fee.

You may have to have a private meeting with the judge to discuss your circumstances. Nevertheless, if everything is straight forward, this may not be necessary. Given that there are no problems with your application, the judge will declare you bankrupt on the same day. The Official Receiver will arrange an interview with you. This may possibly be on the exact same day or more typically at a later date. The official receiver will calculate the payments you need to make towards your creditors each and every month and what this will be. After your interview, the Official Receiver will tell your creditors about the bankruptcy and send them a report with a summary of your financial situation. You will not have to get in touch with the creditors yourself.

When you have been declared bankrupt you may find that this has been publicised in local news papers.

Please contact us if you’d like to discuss whether bankruptcy is the best option for you.