The Stages of Filing for Bankruptcy

Here is a brief overview of the bankruptcy process.

• 1.   Our Insolvency Practitioner recommends that filing for bankruptcy is the best choice for you.
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• 2.   We refer your case to an independent insolvency practitioner (IP) who will then aid you with the bankruptcy procedure.
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• 3.   The IP contacts you for information concerning your finances. He then helps you prepare your ‘Statement of Affairs'  - a calculation of your income and outgoings. This represents your bankruptcy petition. (It is also possible to prepare your Statement of Affairs yourself.)
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• 4.   Your IP files for a Debtor's Petition at your local court.. This is your bankruptcy petition.
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• 5.   Once your petition has been received, a date will be assigned for the court appointment.
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• 6.   On the day of your appointment you attend in person - or for overseas petitions outside of the E.U., power of attorney can be used to enable a third party to attend on your behalf. Note: For all E.U countries outside of the UK, E.U. rules of insolvency apply.)
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• 7.   You are required to pay your court fees to the cashier at this time, and the amounts vary depending on income and employment. The amount consists of two fees, one as a deposit to the Official Receiver (OR) and one is the Court Fee. In the event that you do NOT become bankrupt, the deposit to your OP will be returned - the court fees will not.
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• 8.   The bankruptcy petition is checked and sworn in by a court official, on a holy book or civil affirmation.
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• 9.   The petition is taken away and assessed by a court registrar or judge. You may have the option to leave the Court for 2-3 hours whilst the application is being processed and you will be required to return at a pre-arranged time. The Order will, in these circumstances, have been automatically granted in your absence unless there are serious complications with your application. Note: Some county courts may ask you to sit before the registrar, who might ask a few questions.
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10.   The bankruptcy term then begins. The companies and individuals who are owed money by you are then prevented from contacting you and attempting to bring legal action against you. 

11.   The task of examining your finances begins. This is conducted by your official receiver. 

• 12.   You may be required to participate in a telephone interview with an insolvency official. (excluding London.) The insolvency official may ask you to attend another interview at a later date or arrange a subsequent telephone conversation. For London residents, there is a possibility that no further action will be taken once the bankruptcy has been granted. Otherwise, you will be contacted within 2 days of the ruling by the insolvency services. You may be asked to see a case worker, an examiner or more rarely, an official receiver at the Insolvency Services Office for a face to face interview (face to face interviews are dependent on circumstance.) All contact will be to ascertain information about your debts.
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• 13.   The Official Receiver may appoint a trustee (sometimes an insolvency practitioner) to be responsible for your financial affairs. They may ask you back for a further interview - particularly if there are significant assets involved (this may be conducted by phone). Always cooperate fully with the official receiver.
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• 14.   After the trustee or official receiver has fully investigated your case, you may be eligible for an early discharge from bankruptcy, or you may be required to serve the full 12 month term.
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Once you are formally discharged from bankruptcy, you can then make a fresh financial start.

For more information on filing for bankruptcy or other debt solutions, please click on the relevant links below.

What is bankruptcy?

The history of bankruptcy

Will bankruptcy remove ALL of my debts?

Bankruptcy FAQs

Being discharged from bankruptcy

Bankruptcy Myths

Famous Bankrupts

Bankruptcy For Expats

IVAs

Debt Management

Debt Consolidation

Trust Deeds (Scottish Residents Only)

Alternatively, 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.                          

1Stop Money  - your first stop for finding the debt solution you need.