Bankruptcy Debt Help in England, Northern Ireland and Wales

What is bankruptcy,  how can you become bankrupt?

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)

What if I don't agree with the bankruptcy petition?

A bankruptcy order can still be made even if you refuse to acknowledge or agree to the order. You should therefore try to co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditors' claims you should try and reach a settlement with them before the bankruptcy order is made, trying to do so afterwards is difficult and expensive.

What are the benefits of personal bankruptcy?

Although it's not the only way of dealing with overwhelming debt, bankruptcy is one way to allow you to make a fresh start, subject to some restrictions. It also ensures that your assets are shared out fairly among your creditors. Although anyone can go bankrupt, including individual members of a partnership. Companies and partnerships are dealt with through different procedures.

Bankruptcy petitions are usually presented either at the High Court in London or a County Court near to where you live or trade.  A petition can be presented against you even if you are not present in England or Wales at that time, providing you normally live in, or have a recent residential or business connection with, England or Wales.

When will my bankruptcy end?

A discharge from bankruptcy is the process that ends the restrictions of bankruptcy and releases you from the majority of the debts you owed at the date the bankruptcy order was made. This usually occurs after 12 months, on the first anniversary of the bankruptcy order, but there may be different dates which might apply to you. 

What should I do if I want to make myself bankrupt?

If you want to make yourself bankrupt you should contact your local Court. They can give you the name, address and telephone number of the nearest County Court that deals with bankruptcy. The address and telephone number of your local County Court is listed under 'Courts' in the phone book, where you should look for Civil Courts - County Courts and not Magistrates Courts. The Courts Service website www.courtservice.gov.uk has an index of County Courts that will show you the area where the County Court has jurisdiction. However, you will need to contact the Court to find out if it has jurisdiction to hear a bankruptcy case.

The main changes of the new legislation (Enterprise Act 2002) are as follows: In certain circumstances you may be discharged from bankruptcy after one year (previously the minimum was two year's)

A limit of three years may be placed on the Trustee's rights to realise equity in your home. (previously this was open ended).

Harsher penalties imposed on those who are considered to have brought about their bankruptcy through reckless or irresponsible behaviour. Restrictions after bankruptcy could last fo   a further two to fifteen years.

The UK Government offers a wealth of useful debt help information regarding bankruptcy on it's Insolvency Website which goes into greater detail than we can here. It will answer further questions like

What will happen to my home when I become bankrupt?

What will happen to my bank accounts if I become bankrupt?

Can my bankruptcy be cancelled?

What will happen to my pension if I am bankrupt?