You can present a bankruptcy petition against yourself if you can show that you are unable to pay your debts. There is no minimum level of debt you have to show before you can do so.
How do I declare myself bankrupt?
A bankruptcy petition can be presented by the individual if they wish to make themselves bankrupt or if you have already entered into an Individual Voluntary Arrangement (“IVA”) by the supervisor of the IVA.
An application must be made to the Court and should be supported by a Statement of Affairs detailing your current financial position. The application must comply with certain statutory requirements and you will also be required to pay a court fee.
If the application is successful, a bankruptcy order will be made within 28 days. You will be required to attend an interview with the Official Receiver and the Official Receiver will notify the Land Charges Department that the order has been made and this will be added to the public register of writs and orders.
Advantages of bankruptcy
- You do not have to deal with your creditors therefore you will be subject to reduced pressure
- A personal bankruptcy can be over quite quickly
- Bankruptcy may be a less costly option than other alternatives
- Bankruptcy can allow you to have a new start
- You can keep certain things such as a reasonable amount to fund your outgoings and household goods
- The money you owe can be written off
Disadvantages of bankruptcy
- Your credit score will be affected and it will be difficult to take out credit while you’re bankrupt
- Some debts are non-dischargeable including tax debt
- Your home and any other assets may have to be sold to raise funds to discharge your debts in bankruptcy
- Effect on future work: some professions do not let people who have been made bankruptcy carry on working e.g. becoming a director, some roles in the financial profession
- Effect on immigration status
- Public knowledge: your bankruptcy will be published in the London Gazette and on the Insolvency Service Register available through online searches therefore banks, financial advisors will be able to view this information
Get legal advice on bankruptcy
The decision to make yourself bankrupt is a very serious one and it is important to obtain advice from solicitors before taking such a step.
We can advise you on the procedures and consequences of bankruptcy and any alternative options available to you.
If you present your own bankruptcy petition, we can assist you in the process from preparing the petition to completing the Statement of Affairs, which are all important, detailed and complex documents.
Book an Initial Consultation with Expert Bankruptcy Solicitors and Barristers
We are a specialist City of London law firm made up of Solicitors & Barristers and are based in the legal heart of London in Middle Temple (one of the four prestigious barristers’ Inns of Court) adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding bankruptcy including defending bankruptcy petitions; managing bankruptcy applications (including annulments); advising on bankruptcy petitions and offences; and liaising with the Official Receiver. Whilst we are based in London we provide national coverage across all Courts in England & Wales. We offer free initial telephone advice on bankruptcy matters.
Our expert Bankruptcy Lawyers are able to give specialist legal information and advice relating to bankruptcy matters and connected applications. To contact one of our London solicitors or barristers please click here or call 0207 1830 529.