Bankruptcy Process

Bankruptcy should always be seen as a final option, and you must make sure that all other routes have been fully explored. Make sure that you get advice from an Insolvency Practitioner.

The Bankruptcy Petition: 

The Bankruptcy Petition can be taken by court with or without your permission. Creditors are allowed to start bankruptcy proceedings against you for debts as little as £750. Once the petition has been filed, a court date will be set for the hearing where the court will decide if they will grant your Bankruptcy Order.

The Bankruptcy Order: 

Once the Bankruptcy Order has been made you have been legally declared bankrupt. On the making of the Bankruptcy Order, the Official Receiver will require full details of your financial circumstances which may require a face to face interview.

A Trustee will be nominated to handle all of your finances. Your assets, such as your home, will be sold in order to make some payment to your creditors.

Discharged from Bankruptcy:

The normal term for Bankruptcy is one year and after this time you will be discharged. 

However, your Trustee  may apply to Court for an Income Payments Order if it appears that you have available surplus income. This Income Payments Order will last for three years, even though you have been discharged after one.

There are alternatives to Bankruptcy, and these should be fully explored before you file your Bankruptcy petition. Take the IVAs 1 Minute Debt Test to see your options.

You should always remember that bankruptcy is a legal issue and there are many serious consequences which are unavoidable. 

IVAs.co.uk can talk you through other ways of solving your debt problems. Please contact one of our specialist advisors who will be able to assist you further on: 0800 048 1768.