How much does it cost?
In England and Wales the total fee is £705. This is made up of a fee of £180 to the court and £525 to the Official receiver. If you have a low income or receive benefits, you may be exempt from the court fee leaving only £525 to pay.
Where is the Bankruptcy Order made?
Bankruptcy applications (or petitions) are made at the High Court in London or at a county court near to where you live or trade.
What happens to my house?
If you have a significant amount of equity in your property the Official Receiver will need to realise this for creditors'. Where your family live with you a period of one year is allowed before any formal proceedings can be taken. It may be possible for your wife or a family member to negotiate to purchase your interest to avoid having to sell your home.
What other assets will be sold or recovered?
Any savings or other valuable assets will be recovered or sold. The following are not included as assets;
- Household belongings such as bedding, clothing, furniture, television, other electrical goods and cutlery.
- Tools, books and other items of equipment that you need for your job or business.
What about my car?
If you can show that you need your car for your business or job you should be able to retain it. If your car is considered to be of excessive value it may be necessary to sell this and replace it with a cheaper car.
What are the bankruptcy restrictions?
- You must not take credit of £500 or more without disclosing to the lender that you are subject to a bankruptcy order.
- You cannot run a business in a different name without disclosing the name used under the bankruptcy.
- You cannot be involved with the promotion, management or formation of a limited company, or become a director without getting permission of the court.
- You may not hold certain public offices.
How long does bankruptcy last?
You will normally be discharged within 12 months of the bankruptcy or earlier if all enquiries have been completed. The Official Receiver or Trustee can apply to have the automatic discharge suspended if his enquiries are ongoing.