
Bankruptcy
What is Bankruptcy?
Bankruptcy is a formal insolvency procedure. You can apply to go bankrupt if you can demonstrate that either your debts exceed your assets or you are unable to pay your debts when they are due. There is no restriction on the level of debt you must have to apply.
We do not offer assistance in petitioning for bankruptcy because you can apply online through the central government website, GOV.UK. You’ll receive your decision online, usually within 28 days and, if your bankruptcy is approved, you’ll be contacted by the Official Receiver who will oversee your bankruptcy and will want to know about your financial history.
If you have surplus income after meeting your essential household and personal expenses, you will have to make payments out of your income for up to 3 years.
In addition, you will have to hand over any assets you have to the trustee in bankruptcy to be sold to repay your creditors. This does not include everyday items you need for your reasonable domestic needs but is likely to include your house if it can be sold for more than the mortgage outstanding.
Bankruptcy usually lasts for 1 year, and once you have been freed (discharged) from your bankruptcy, you are released from your debts (with certain exceptions).
Advantages of bankruptcy:
