Filing bankruptcy

Please note that from April 06 2016, all bankruptcy applications must be made online. see bankruptcy online.

Filing for bankruptcy in the UK is something you can do yourself by applying online. In order to apply for bankruptcy you must be able to show that you are unable to pay your debts.

What do I need to file for bankruptcy?

Filing for bankruptcy requires you to provide information about your affairs including finances and the circumstances leading to your insolvency.

You will also be expected to pay:

  • A deposit
  • An application fee

Details of costs are below. Please note that you will not be able to file bankruptcy unless you can pay the deposit.

The Cost of Filing Bankruptcy

Unfortunately filing for bankruptcy costs.

  • £550 towards the administration of your bankruptcy. This is known as the deposit and must be paid.
  • £130 for the application process.

Each married couple pays a separate fee.

Is filing for bankruptcy scary?

That is a difficult question to answer. Some people will be a complete nervous wreck filing for bankruptcy whereas others will see it as a walk in the park. The bottom line is to be prepared, understand what you are getting in to and most importantly that you have received professional advice.

You will hear me stress the importance of advice throughout this website and that is for a very good reason. Filing bankruptcy can be extremely consequential and very unforgiving. It is also largely mis-understood by many people in the debt industry.

What happens if I change my mind?

Once you have filed for bankruptcy and a bankruptcy order has been made the only way to reverse it is through annulment. You can only annul your bankruptcy if you meet the grounds, one of which is paying your bankruptcy debts and costs in full. The problem with this is that bankruptcy costs can very quickly escalate. Therefore the cost of annulment can very quickly become unreachable. If you want to avoid this situation then you must make sure that filing bankruptcy is the right decision. You need to know what the consequences will be for you and your family, both in the short term and the long term.

How can a creditor file for my bankruptcy?

It is important to realise that one or more of your creditors who are owed at least £5000 or more by you, and that amount is unsecured, can present a creditor's petition to start the bankruptcy process. If a creditor has started proceedings a bankruptcy order can still be made even if you do not agree. Before the court will allow a creditor to file a petition for your bankruptcy they must be able to prove that you are unable to pay your debts.

The creditor will usually achieve this by serving a statutory demand that you are unable to comply with or by presenting a petition on the basis of a failed execution.

If a creditor is threatening action against you and you want to avoid bankruptcy then you must act quickly.