New figure from the Insolvency Service indicate record levels of insolvency for 2009.
The ‘Statement of Affairs' is a sworn document that effectively calculates your income and outgoings. If a court is to make a ruling on your bankruptcy they will first need to ascertain that you will be able to pay at least 25% of your outstanding debts, and to do this you must prepare a Statement of Affairs to divulge the necessary information.
A statement of affairs reveals exactly how much you owe to your creditors, the number of creditors you owe to, the amount of money you have coming in as well as offering a comprehensive list of your disposable assets - including things like your home and car. Food, utilities and basic living requirements are taken into account, but any luxuries will not be eligible for claim. The reason for and manner in which you found yourself in bad debt will also be divulged in your statement of affairs - which can be anything from loss of job to suffering a bereavement. The court will be able to decide if your debt was deliberate or an unfortunate turn of circumstance.
Your answers in the statement are important and may influence the court's decision on your case. As the statement of affairs is a very detailed document, it is highly recommended that you seek professional help in completing it - preferably from the Insolvency Practitioner overseeing your case - to ensure it is filled correctly.
Within the statement of affairs there is a Declaration of Insolvency which you will be required to swear on before an officer of the court or a solicitor. To swear it in county court before an official incurs no fee, but to swear in a high court in the presence of a solicitor costs £7 - joint bankruptcy of a married couple will incur the same fee. The fee is payable by cash, postal order, by bank/building society or a solicitors cheque - credit cards will NOT be accepted. It is also worth noting that the county court option requires two signed copies of the bankruptcy documents, whereas the high court option requires only one - signed and dated.
You are required to complete the statement of affairs in capital letters and in black ink - failure to do so will result in dismissal of the form and you will need to begin the process again. Staff at the court may inform you on the correct completion of the forms, but they CAN NOT offer legal advice. It is best to consult your solicitor or licensed Insolvency Practitioner.
People who own or are a partner in a business will be required to complete a different version of the statement of affairs. For more information see your Insolvency Practitioner.
For more information on filing for bankruptcy or other debt solutions, please click on the relevant links below.
Will bankruptcy remove ALL of my debts?
Being discharged from bankruptcy
Trust Deeds (Scottish Residents Only)
To discuss bankruptcy or any other debt solutions, please call 1Stop Money on 0800 012 4039 or fill in the online form and a 1Stop Money broker will contact you as soon as possible.
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