When considering to declare yourself bankrupt, or request that someone owing money to you is made bankrupt, you will need to complete a Bankruptcy Petition.
What is a Bankruptcy Petition?
There are two kinds of Bankruptcy Petitions – a debtor's petition, and a creditor's petition.
A creditor's petition is filed by a company owed funds of £750 or more, to request that the person owing this money is made bankrupt. This is also known as a "statutory demand".
A debtor's petition is the formal request to make yourself bankrupt. A statement of affairs form will need to be completed to accompany the petition before being filed.
What do I need to do?
Before filing a Bankruptcy Petition, you should seek sound legal and financial advice. Bankruptcy is a very serious decision to make and the implications will change your life. There may be alternative options available for both creditors and debtors.
If you are certain that you wish to proceed with declaring bankruptcy, you will need to complete all required forms and return two copies of each to your local court along, with all necessary fees. Bankruptcy Petitions will not be accepted until all fees are paid.
How much will filing a Bankruptcy Petition cost?
Filing for personal bankruptcy will incur the following fees:
- £175 court fee
- £525 petition deposit to manage the bankruptcy
The court fee can sometimes be waived in certain cases, for example, if you receive Income Support. However the petition deposit fee is payable in all cases.
Filing to make someone who owes you money bankrupt will incur the following fees:
- £220 court fee
- £700 petition deposit to manage the bankruptcy
What happens now?
Once the Bankruptcy Petition is filed, the official receiver will look into the finances of the individual in question and decide what, if any, payments can be made to clear the debt. The court will then make a bankruptcy order, and you will then be declared bankrupt.
For more information regarding Bankruptcy Petitions, call us now on 0808 163 9579 to speak to an advisor or complete the form below.
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