Guidance on Bankruptcy – Petitions & Services
Bankruptcy is the insolvency process prescribed in English law for individuals struggling with debts, to repay their creditors what they can afford from their assets and cash.
These debtors either have insufficient assets to repay their creditors in full or cannot pay their debts as and when they fall due and therefore, either have to petition themselves to be placed into Bankruptcy, or can be forced into it by their creditors.
The process is aimed at ensuring that a debtor is given the opportunity for rehabilitation however naturally, the process often allows for considerable write offs of debts and a quick discharge. It ensures that credit ratings, reputation and financial position can be gained back as quickly as possible without the need of lengthy repayment plans, but can sometimes be restrictive on future earnings or business trading.
Full details on the Bankruptcy process can be found here BANKRUPTCY, however this article does go onto explain how to make yourself bankrupt, the pitfalls of the process and how we can help so read on…
How do I make myself Bankrupt?
To make yourself Bankrupt, you will need to complete a set of forms which petitions for your own bankruptcy (the Petition) and which explains what assets and liabilities you have (the Statement of Affairs). Once completed, these forms need to be filed at a county court local to you, or at a court which has national insolvency jurisdiction such as London or Birmingham.
You will usually be required to file these forms on the day in which you have set to attend a meeting at the court, this can be arranged through the court or by this office but the reality is that this is a simple meeting where you present the papers, pay a fee of approximately £700 and await a court judge to review the forms and grant the order to make you Bankrupt.
On some occasions, you may be asked to go to one of the Courtrooms to attend in front of a judge, so that he can ask you about your paperwork (and basically ensure that your answers in person, match that of the information on your forms) however this is not always the case.
If any party wishes to dispute your bankruptcy (usually only you when a creditor has presented the petition) or a person has attended to hear your questioning by a judge, then they can be present in the courtroom with you. This is often referred to as your Bankruptcy hearing and is the point in which a judge will decide upon whether to grant the order to make you Bankrupt or whether to either dismiss or adjourn it.
My view is that the sooner you have your hearing and are granted an order to be made Bankrupt, is the sooner you can get discharged from Bankruptcy and start rebuilding your life therefore don’t delay in obtaining our advice if you think that this process is right for you.
How can Bridge Newland assist with my Bankruptcy?
We can of course ensure that your financial position is reviewed to ensure whether a Bankruptcy is right for you (over the alternative processes such as an IVA, a DRO or an informal negotiation). However, our main area of expertise in this regard is in dealing with the completion of the forms pre and post Bankruptcy where we offer a service of £250+ VAT, per hour, to review these forms.
Correctly completing your forms is imperative as it can be the difference between, being allowed into Bankruptcy by the Judge, or it being thrown out.
It is also vitally important to get help when completing the forms given to you after your Bankruptcy has been granted as the intention of these forms are to establish if your assets need to be taken from you and sold, your businesses shut down, or a proportion of your income collected to repay your creditors. Therefore, careful completion of these forms will ensure that your interests are protected.
If you feel that you could benefit from this service, or if you need advice about Bankruptcy generally then please feel free to contact us on 0800 612 6197.