How to go Bankrupt
Going bankrupt is an option for people that are in debt and are struggling to get the debt back under control. It has been said that it should only be looked into as a last resort. Here are a few of the steps you need to take to go bankrupt.
Anyone in the UK can declare themselves bankrupt, they must have a UK passport, most of the debt must have been taken out while living in the UK and you must be able to pay a fee of £475 for the court clerk on the day of your bankrupt request (may differ if your on benefits).
You also have to contact your local county court and request the bankruptcy application forms. You have to complete your bankruptcy petition and statement of affairs document. The document is around 30 pages and needs to be completed correctly or this could affect your petition. You need to submit this to your court. Take two copies of the form so you have a copy once yours is sent to the court.
Once you have completed your forms, you take the forms, with your Bankruptcy fee, to your local County Court. You should arrive before 9.30 to ensure the process can be completed the same day.
Once at court one of four things can happen. i) delay the proceedings as the courts may need more information. ii) Decline your bankruptcy request - maybe because an administration order would be more appropriate for you. iii) Suggest an IVA (Individual Voluntary Arrangement) as this maybe for suited for your needs. iiii) Declare you bankrupt.
This is just a brief insight to some of the things that go into becoming bankrupt. We suggest you get in touch and see if one of our debt management options or maybe an IVA will be right for you.
Bankruptcy should be looked at as a last resort. There is a stigma that comes with bankruptcy, things like your name released in to the public domain, and you can’t lend money (loans, credit cards, mortgages etc) for up to five years.
We believe that fighting debt in the right way can save so many people from going bankruptcy. Some cases are different and bankruptcy is the only option. But we should all be fight the debt in the UK as much as possible at this time.