Steps towards declaring Bankruptcy

Declaring Bankruptcy puts across your inability to pay the debts you have taken even after they are due. There are few criterion and process that are required to be followed to file bankruptcy in UK.

Step 1: The below 3 major criterion are needed to be satisfied to file bankruptcy in UK.
You need to have a valid UK passport and an address of correspondence in UK.
The majority of the debt leading to bankruptcy should have been taken during your stay in UK.
You can afford £600 as the court fee in cash to the court clerk at the time of submission of your petition. You can also discuss on possible state benefits currently being entitled, that can lead to a deduction in this amount.

Step 2: Local County Court Identification
It is mandatory that you need to submit your petition documents in person at the local county court and hence identify the court nearest to your residence. You can find the court by means of a telephone directory or online search through the court finder site. The court finder site can be accessed from the link http://www.hmcourts-service.gov.uk/HMCSCourtFinder/.

Step 3: Obtain the Application form
You can get the required forms either from your local county court or can download them online. You can call up the court and request them to send you forms for submitting bankruptcy petitions. All these needs to done through the nearest court that you have identified in step1. Once confirmed that you are pursuing bankruptcy, they will send you blank copies of two documents, the bankruptcy petition (doc 6.27) and the statement of affairs (doc 6.28). In other cases, you can also download these forms from the link http://www.hmcourts-service.gov.uk/HMCSCourtFinder/FormFinder.do

Step 4: Pay the fee for bankruptcy in the court
The court fee for the bankruptcy procedure is about £600 per case, but still it is advisable that you confirm this amount with your local county court to avoid any last minute hassles. Also in case you are entitled for any benefits from the state, verify for any discount or fee reduction you can apply for.

Step 5: Book an appointment for the court session
It is necessary that you book an appointment in advance for your bankruptcy court session. Some courts do not require prior appointments as different courts follow different procedures. So it is advisable that you check with you local court whether booking of appointment in advance is required or you can reach on the date of petition submission.

Step 6: Documentation completion
The bankruptcy petition and the statement of affairs documents are lengthy documentations and require time to complete. Hence allocate enough time to furnish them with complete details and ensure that all the data entered are correct as per your knowledge. After completion, you might need to obtain 2 copies of these forms as the court might ask you to submit three copies in all.

Step 7: Submit your bankruptcy application at the court
Once you are sure of the data entered in the application and have made a total of 3 sets including the original, submit the applications in your county court. Make sure that you reach by early in the morning before 9:30 to complete the process the same day.

Step 8: Follow the court procedures to obtain your bankruptcy declaration
At the court, you might have to pay the bankruptcy petition fee to the court clerk and submit the documents. Before submitting the documents, check for completeness of the document and sign on the petition document with a valid witness.
You will be then asked to meet a district judge in a closed court as bankruptcy cases are not conducted in an open court. The judge will read through the documents and will deem you eligible or ineligible for bankruptcy. If the documents are complete and the judge is also convinced of your financial status, you would be declared bankrupt the same day.

Step 9: Meeting the Official Receiver
Once you are declared bankrupt, you will be asked to meet the official receiver either on the same day or a pre-decided date in future with an appointment.


The Official receiver will study your bankruptcy application in detail and will prepare the terms of your bankruptcy. He decides on the various parameters that revolve around dealing with your bankruptcy. He decides the term of the bankruptcy after careful consideration of your case. An official receiver has the discretion to reduce the term from normal 12 months based on certain exceptional cases. He analyses the option of you paying out a monthly payment towards your debt and also determines the payment amount. He also finally decides the ways in which your assets or property can be treated with regards to the liquidation process for protecting the interest of the creditors.

Post a comment