Wondering how to go bankrupt? Here's a step by step guide to going bankrupt

How To Go Bankrupt

Wondering how to go bankrupt?

This guide explains all the steps you will need to take to apply to go bankrupt. 

• Step 1: Make sure bankruptcy is the right option for you.
• Step 2: Find out which Court you have to apply to.
• Step 3: Get the bankruptcy fee and deposit together.
• Step 4: Complete the bankruptcy forms.
• Step 5: Take your bankruptcy forms to Court.
• Step 6: Attend your bankruptcy hearing.
• Step 7: You are declared bankrupt.

Step 1: Make sure bankruptcy is the right option for you

Bankruptcy can be an effective way to solve personal debt, however it should ALWAYS be considered as a LAST RESORT, and the Court will expect you to HAVE considered any alternatives that you may qualify for.

Making yourself bankrupt is a big step to take and requires expert debt advice.

If you haven't already received advice from a bankruptcy expert and are considering how to go bankrupt, make sure you get a free and confidential assessment of whether you qualify for bankruptcy and what impact it will have on your current situation. 

Step 2: Find out which Court you have to apply to

You cannot choose the court where you declare yourself bankrupt. You must attend the court within the district where you have lived for the greater part of the last 6 months. Unless you live in London, this will be your local County Court. If you have a business, or had one within the last 6 months, you will need to apply at the County Court in the area where you traded.

To go bankrupt you will first need to complete the following forms. You can get the forms, free of charge, from a local court that deals with bankruptcy.

If you live or trade in London the Court you need to use will depend on how much your debts are:

• If you owe less than £100,000 you need to apply to the Central London County Court
• If you owe more than £100,000 you need to apply to the High Court

Step 3: Get the bankruptcy fee and deposit together

This might sound ridiculous, but applying to go bankrupt is not cheap.

You have to pay the Official Receivers deposit of £525 and £180 Court fee. So the total you have to find before you can go bankrupt is £705.

If you have a low income or receive benefits you may be exempt from the court fee, allowing you to go bankrupt for £525.

Step 4: Complete the bankruptcy forms

You need to complete two forms to go bankrupt:

• The bankruptcy petition (Form 6.27) - this form is your request to the Court for you to be made bankrupt and includes the reasons for your request.
• The statement of affairs (Form 6.28) - this form shows all your assets (anything that belongs to you that may be used to pay your debts) and all your debts, including the names and addresses of the creditors and the amount you owe each one. on oath before an officer of the court or a solicitor.

You can get the forms, free of charge, from any court that deals with bankruptcy. You can also complete the forms on-line.

If you are dealing with a county court, the court will need the completed forms and 2 copies of each before it can accept your petition for bankruptcy. If you are taking your petition to the High Court, you won't need any extra copies.

Step 5: Take your bankruptcy forms to Court

Now you've completed the forms you'll need to take the forms to the bankruptcy court, along with two copies of each, the bankruptcy fee and the Official Receivers deposit.

When you get to court, you need to hand the forms to the bankruptcy clerk, who will check all the paperwork has been completed correctly.

The court will then either set a date and time for your bankruptcy hearing, or hear your case straight away.

Step 6: Attend your bankruptcy hearing

At your bankruptcy hearing, a District Judge will consider the bankruptcy petition to decide whether to reject your application, or to make a bankruptcy order. The court may reject your application if, for example, it thinks there is a better solution to your debt problem.

Step 7: You are declared bankrupt

If the court accepts your bankruptcy order, you'll be officially bankrupt.

Need Bankruptcy Advice?

If you haven't already received advice from us and are considering how to go bankrupt, you can use the online bankruptcy advice tool, which will provide you with a free and confidential assessment of whether you qualify for bankruptcy and what impact it will have on your current situation. 

What happens next?

You'll get a letter from the official receiver within 2 weeks of the court making you bankrupt. The official receiver is an officer of the court who will manage your bankruptcy at this stage.

Read this guide to what happens at the official receiver to see what happens once you are bankrupt.

Source : articlesbase.com