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Bankruptcy Petition

Updated for 2026

Under UK insolvency law, there are three ways you can be made bankrupt:

  • Creditor Petition to the Court: someone else is applying to make you bankrupt.
  • Debtor Petition to the Court (applying for your own bankruptcy): see our guide on going bankrupt.
  • IVA Supervisor Petition to the Court: where you have defaulted on an Individual Voluntary Arrangement and no alternative arrangement can be agreed.

If you are considering bankruptcy yourself, the current fee is £680, payable to the Insolvency Service when you apply online. However, bankruptcy is not the only option: you may want to consider a Debt Relief Order, a Debt Management Plan, or an IVA before going down this route. You can explore all your options on our alternatives to bankruptcy page.

Creditor’s Petition

For a creditor to present a bankruptcy petition to the Court, three conditions must be met:

  • You must usually live in England or Wales, or be actively carrying on business there.
  • The debt owed to the petitioning creditor must be at least £5,000.
  • You must have no realistic ability to repay the debt, or be refusing to pay it. This is typically proven by a statutory demand that has not been set aside or complied with, or by an unsatisfied bailiff return.

Two or more creditors may jointly petition. Secured creditors can petition for the portion of the debt that is not covered by their security.

The creditor’s petition must state:

  • The amount owed, and if interest is included, how it has been calculated and the justification for charging it.
  • That the debt is for a liquidated sum payable immediately or at a specified future date, and that you have no realistic chance of paying on time.
  • That the debt is unsecured.

If the petition is based on a statutory demand, only that debt plus interest accrued since the demand was issued can be included.

If the petition is based on an unsatisfied execution of a previous court order, full details must be given, including the value of any sum raised by the court’s enforcement agents.

Statement of Affairs

If a bankruptcy petition is presented against you, you will need to complete a Statement of Affairs. This is an official document detailing your financial circumstances and assets. Assets are items of value that could be sold to help repay your debts.

The form requires detailed and accurate information, including valuations of assets that you may not know without professional help. If you are unsure what to include, you can request a call back for guidance.

The Court may refer the case to an Insolvency Practitioner if an IVA or a Debt Relief Order (DRO) would be a more appropriate course of action. Since April 2024, DROs are free to apply for and are available if your total debts are £50,000 or less.

IVA Supervisor’s Petition

If you are currently in an IVA, your supervisor may petition for your bankruptcy on the grounds that:

  • You supplied false or misleading information that the arrangement was based on.
  • You have failed to keep to the terms of the arrangement.

In this situation, the IVA supervisor can become the Trustee in the bankruptcy. You can read more about the role of the trustee in our Official Receiver and Trustee guide.

What Happens After a Bankruptcy Petition Is Issued

A bankruptcy petition must usually be served on you in person. Even after it has been served, a bankruptcy order may still be prevented, but you must give at least seven days’ notice of your intention to oppose it.

If the petition is based on non-payment of a county court judgement, you will normally need to set aside that judgement to have grounds to oppose the petition.

Once a bankruptcy order is made, an Official Receiver will be appointed to manage your case. Your bankruptcy typically lasts 12 months, but there are important restrictions that apply during that period, and some debts may not be written off.

If you want to understand the full hearing process for a creditor’s petition, see our guide on the bankruptcy hearing.

Can You Stop a Bankruptcy Petition?

Yes, in some cases. You may be able to stop a bankruptcy petition by:

  • Paying the debt in full before the hearing date.
  • Reaching an agreement with the creditor (for example, a payment plan).
  • Applying to the Court to set aside the statutory demand.
  • Proposing an IVA as an alternative.

Acting quickly is essential. If you have received a statutory demand or a bankruptcy petition, seek advice as soon as possible. You can request a free call back from our team, or explore your alternative options.

This page is for general information only and does not constitute financial or legal advice. If you are struggling with debt, we recommend speaking to a qualified adviser.