Bankruptcy Advice

Bankruptcy is not necessarily an ideal solution but for some it can be the only option available. It is considered the most drastic financial process to go through hence most people use a 3rd party, such as ourselves, to file for bankruptcy on their behalf. If you are considering petitioning for bankruptcy it is important to be aware of the following consequences before taking action:

A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented by:
Yourself (Debtor's Petition); or Creditors who are owed at least £750 by you (Creditors' Petition) If you want to make yourself bankrupt you should contact your local Court and they will advise you of the petition process and they will also provide confirmation of the costs involved.

Following the making of the bankruptcy order, the Official Receiver will take control of all of your assets. A licensed insolvency practitioner may be appointed as Trustee in bankruptcy if you have significant assets to be realised or realisation is likely to be complex. The Official Receiver/Trustee has a duty to realise any assets that will benefit your creditors, sell them (if necessary) and subsequently distribute the proceeds to your creditors.

Bankruptcy is an alternative to an Individual Voluntary Arrangement although it can be considered a more serious regime as the petition is advertised in the London Gazette and may also be advertised in your local newspaper. There is also a public record of all bankruptcies held on the Insolvency Register.