How To Declare Bankruptcy

Bankruptcy is a lengthy insolvency procedure; you should always seek information about alternatives and ensure that these options have been fully explored.

If you are looking to discover how to declare bankruptcy, it is essential that you get bankruptcy advice so you are aware of the bankruptcy process and the risks involved.

Any UK resident who incurred the debts in the UK can declare bankruptcy. But you can also be declared bankrupt without your permission, as creditors can take you to court for as little as a £750 worth of debt.

To declare bankruptcy, you will have to appear in Court in person so that you can present your Bankruptcy application documents which are:
Bankruptcy Petition – Where you petition your bankruptcy and state the reasons wanting to declare bankruptcy
Statement of Affairs – Will detail your assets, liabilities and contact details of all creditors. It is also your declaration of insolvency that you will need to swear on oath.

To declare bankruptcy you will have to pay a court fee. It is possible that the Court fees can be reduced if you are on certain benefits. Currently you will have to pay:
£345 towards the administration of your bankruptcy order
£150 court fee, which may be paid if you are on benefits
£7 for swearing of the statement of affairs in High Court or before a solicitor

After you have presented the documents and paid the court fees, the next step in how to declare bankruptcy is to have a meeting with the District Judge who will decide whether bankruptcy is the best debt solution for you. If it is, your bankruptcy will often be declared on the same day,

You may be asked to have a meeting with an Official Receiver, who will decide how long your bankruptcy order should last (typically 12 months) and whether to sell your assets and if you can afford to make a additional contributions with an Income Payments Order.

Always seek ethical and expert bankruptcy advice when declaring bankruptcy as there could be other debt solutions which means you do not need to worry about how to declare bankruptcy, and therefore avoid bankruptcy disadvantages.

By: One Advice

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