What Solutions Are Available
Before going bankrupt you should understand your options by seeking advice.
How To Go BankruptApplications for self bankruptcy are made online. This is done via the Insolvency Service Portal and does not involve a Court hearing nor a Judge. An Adjudicator appointed by the Insolvency Service decides if you should be made bankrupt.
1. Start your application by creating an account
2. Fill in your entire applicationThe application is quite long – but you do not need to do it all at once; you’re emailed a reference which you can use to login and continue later.
Before starting it is advisable to draw up a budget of your total income and what it costs you to live each month.Documents you’ll need to have at hand to complete your application include:
Details of Income
- Wage slips
- Benefits statements
- Pension statements
Details of OutgoingsFor example, but limited to
- Household bills (eg electricity, gas, water, etc)
- Rents or mortgage
- Secured loan payments
- Council tax/rates
- Hire purchase/rental agreements
- Child Maintenance payments
- Other expenses required to maintain a reasonable standard of personal or family living (clothing, travel, parenting cost, etc)
Details of debts
- Credit cards
- Unsecured loans
- Unpaid council tax bills from previous years
- Enforcement agent or bailiff letters
- Details of any benefit deductions
- Court fines
- Other outstanding debts, for example unpaid utility bills from a previous address
3. Pay the full £680 bankruptcy fee
- £130 adjudicator fee and;
- £550 Official Receiver’s fee
4. Submit your application
Do not frivolously submit the application. Once you’re happy with the advice you’ve been given and the fee has been paid, you submit your application.
5. AssessmentOnce the application is submitted the Adjudicator will decide if a Bankruptcy Order is to be made. You will be contacted by post or email once a decision is made; They aim to process 95% of applications within 2 working days.
- More information is requested to decide whether a Bankruptcy Order should be made.
- The application is dismissed (rejected).
- You will be referred to an approved intermediary if a Debt Relief Order may be appropriate.
- An Insolvency Practitioner is appointed if an IVA could be more appropriate.
- A Bankruptcy Order is made.
6. Bankruptcy Order is madeIf your bankruptcy order is made, the details are passed to your local Official Receiver’s office who will interview you about your circumstances and assets. The Official Receiver will then look how best to raise money from your available assets and ongoing income (if any) for the benefit of your creditors.
7. Appealing a Bankruptcy rulingIn the event it is rejected you have 14 days to request a review. If the Adjudicator decides to uphold the decision not to grant a Bankruptcy Order then you’ll have 28 days to appeal this decision to Court. The Court will then either grant or deny an order.
Can I Deal with my Debts Without Declaring Bankruptcy?If you feel as though you have unmanageable debt but don’t want to go ahead with declaring bankruptcy, then there are alternatives which you may want to consider. Whatever your financial situation, we can help to find the right debt solution for your debt problems.
Our team can offer you a an explanation of bankruptcy and alternatives available.