Declaring bankruptcy is not an easy way to escape your debt problems. It is important you research how bankruptcy works. Any UK resident can declare themselves bankrupt – there is no minimum debt in law; but you’d normally owe a least a few thousand pounds for reasons of practicality.
Before going bankrupt you should understand your options by seeking advice.
How To Go Bankrupt
Applications 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.
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 Outgoings
- 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