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How do I file for Bankruptcy ?

Bankruptcy is considered as a last resort way of dealing with any debts that you may have and are unable to pay. If you owe more then £750 and cannot meet the repayment demands then you could be made bankrupt.

In the majority of cases it will be the creditors who file for your bankruptcy but should you wish so then you can do this yourself by completing a Bankruptcy Petition known as a Debtor's Petition. Should your creditors file for your bankruptcy then they will complete a petition known as a Creditor's Petition.

In order to file your Debtor’s Petition you will need to find the details of the county court nearest to you who can deal with bankruptcy. It is important to note that you will have to pay some fees in order for this process to be completed.

The Initial Process

After filing for bankruptcy you will be appointed an Official Receiver. They will need you to answer a number of questions regarding the debts that you owe such as the amounts and who your creditors are. They will then need to know and see evidence regarding the amount you earn, your total income, any assets that you may have and what your outgoings are. A date for the Bankruptcy Hearing will then be set and your creditors will be informed so that they can compile a complete list of the debts that you owe.

The Bankruptcy Order

This will usually involve a bankruptcy period of between 12-36 weeks, money made from the sale of any assets that you may have and the monthly contributions to be made by you from your income.

At this point a Trustee will be appointed to help sell your assets. During this period you will not be allowed to obtain credit in any form or hold a cheque book. Once you have completed your bankruptcy your debts will be written off. You should however note that when someone is declared bankrupt that this will be published in the local newspaper and listed on the Insolvency Register. The latter means that it will affect your credit rating in the future. Make sure that you are aware of all the facts before you decide to declare yourself bankrupt.