Bankruptcy is a legal proceeding whereby anyone who is insolvent (owing more than all their combined assets are worth) can clear the majority of their debts. It is an option for residents of England and Wales and lasts for a minimum of 12 months. There is a charge of £680 (as of June 2021) to file for bankruptcy. If you have no way of resolving your debts and own few assets then bankruptcy could be a suitable option. However, if you are a homeowner with equity in your property, going bankrupt could mean losing your home.
A bankruptcy order can be made for one of three reasons:
♦ You cannot pay what you owe and want to declare yourself bankrupt.
♦ Your creditors apply to make you bankrupt because you owe them £5000 or more.
♦ An insolvency practitioner makes you bankrupt because you’ve broken the terms of an individual voluntary arrangement (IVA).
All individuals declared bankrupt will have their details listed in the London Gazette and entered onto the bankruptcy and insolvency register, a free online resource. Unless it is newsworthy, local newspapers will not usually publish the details. You can keep your address private if you fear for the safety of yourself or your family. If this is the case, you can apply for a Persons at Risk of Violence order and submit it to the court dealing with your bankruptcy.
How we can help
Leston’s can provide generic guidance on debt matters, for individual guidance however we would refer you to an approved independent financial advisor who would take the lead in guiding you through the various options. For assistance simply click on the “Create a case” link at the top of this page to initiate a case.
1.90