How Declaring yourself Bankrupt (UK Process)

What would it exactly mean declaring bankrupt to handle your debt problems? Filing for bankruptcy would manifest into taking away all of your unsecured debts after the official receiver makes a careful assessment of your financial situation.

In such a case, you might be able to pay something to your creditors, as your unsecured debts are written off. After your bankruptcy, your property could be put at stake, if it involves some equity.

You may also be held bankrupt by one of your creditors, who may file it for you by force, subject to the condition that you are under debt by the HM Revenue and Customs in the UK.

People here mostly file for bankruptcy assuming it to be the only best solution to handle their debts, and follow the procedure by first filling in an application form and submitting it to their local County Court.

If everything is well in place, the applicant is declared bankrupt the very same day.

There is a nominal fee of around £700 (including £175 as court fee and £525 as deposit money) to be paid in cash at the time of submitting the application.

Low income earners do not need to pay the Court fee fully and their fee reduces to £525 only. Bankruptcy filing is not possible online though.

Bankruptcy could be a possible way in dealing with your personal debt problem, but one needs to be prepared to face the implications of bankruptcy.

You need to weigh its pros and cons, particularly if you are a property owner. Further requisite application forms need to be filled in with accuracy. Hiring a professional and taking his advice would be very useful.

Highlights:

Valuate all the options available to you before applying for Bankruptcy in the UK. In fact this is a server solution that has some serious legal implications. Talk with an impartial advisor before proceeding.

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