A guide to Bankruptcy
BASIC PROCEDURE
If after seeking professional advice on possible solutions to your debt problems, you still wish to petition your bankruptcy, then please read our guide to bankruptcy procedure for information.
To petition your bankruptcy then you will need to do the following:
- Telephone your local County Court and ask them to send the forms, they will also send out a helpful booklet on how to best complete the document.
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Once complete, photocopy it for your reference, telephone the Court once more to make an appointment to bring the form in, this will be the day you file your petition.
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A member of the Court staff will check over the paperwork and when ready you will go in front of a Circuit Judge. This is usually in a small room and the only persons present will be you and the Judge.
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You may be asked several questions about your finances and then the Judge will decide there and then whether to approve your application. In most case it is approved and you are day one into your bankruptcy.
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The Court will issue allocate a reference number to your case which you will need to note for any future correspondence with creditors.
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Your paperwork will be sent to the Official Receivers office for their reference and they will be in contact to discuss matters further.
HOW MUCH WILL IT COST
£485 in cash, postal orders, bank, building society or solicitor’s cheque; and made payable to H M Paymaster General.
Surprisingly the Court does not accept personal cheques or credit card transactions. This fee is broken down as follows:
£335 Official Receiver's fee and £150 Court fee.
If you can demonstrate that you are on benefits then you may be exempt or pay a reduced fee.
You will need to ask the Court for more details on this. Cost updated November 2007.
WHAT ARE MY RESTRICTIONS AS A BANKRUPT
You will be required to:
- Not take on any further credit of £500 or more without informing the lender that you are bankrupt.
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Stop using your bank account and any credit cards etc immediately. The Official Receiver will guide you as to what type of account you may hold. This is usually a basic account.
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Cooperate with the Official Receiver. You may well be asked to attend his/her office for interviewing, in some instances this can be done over the telephone.
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Notify the OR of any windfall or financial gain during the bankruptcy.
- The OR may also place other restrictions upon you.
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