This is usually a last resort when all else fails and there is little or no possibility of paying your creditors. You can petition for your own Bankruptcy through an online application process via www.gov.uk/bankruptcy. Once the application has been submitted online it will be received and assessed by an adjudicator and then you will be notified of the decision. The fee for this will be £680. The fee is made up of £130 for considering the application and £550 for managing the bankruptcy.
The Bankruptcy usually lasts 12 months however, depending on the severity of the case it can be longer.
Before taking this final step every aspect should be considered as there are a number of restrictions on you once in Bankruptcy, these being:-
- All of your bank and building society accounts will be frozen and any funds will be taken. You will need to make alternative banking arrangements.
- You can not be a company director.
- Your assets are examined and anything of any worth can be sold to pay creditors. These assets do not include household items or tools necessary for your work. It does include:-
- A car with a value of more than £1,500.
- A property with equity.
- After the examination of your income and expenditure if you can afford to, you will be asked to make a monthly contribution, for a period of 3 years.
As you can see you should seriously consider your options before declaring yourself bankrupt.
A creditor who is owed £5,000 or more can issue a petition for bankruptcy which, if not defended, would result in a bankruptcy order being made by the court at the hearing of the petition.
If you have any questions or require further information about the services we offer, please contact us on 01302 342875.