There are three fees you may have to pay when you take your petition and statement of affairs to the court:

• The Court fee of £180

In some circumstances the Court may waive this fee; for example, if you are in receipt of certain benefits. If you are not sure whether you qualify for a reduction in the fee, or if you are exempt from paying the fee, Court staff will be able to advise you.

• The Official Receivers deposit of £525 towards the costs of administering your bankruptcy.

This deposit is payable in all cases and helps meet the official receivers’ costs.

• The fee to swear the statement of affairs.

In a County Court, no charge is made to swear the affidavit, which is part of your statement of affairs. But in the High Court or before a solicitor there is a £7 charge.

If you are a married couple and you are both applying for bankruptcy, you will each have to pay separate fees. If you were in business as a partnership, each partner will have to pay separate fees, unless all parties apply for a joint bankruptcy petition under the Insolvency Partnerships Order 1994 (Form 16).

The above fees should be paid in cash, postal orders, or by a building society, bank or solicitor’s cheque. Cheques should be made payable to H M Paymaster General. Personal cheques will not be accepted.

Once you have been made bankrupt, all assets belonging to you come under the Trustee’s control, including your home. Twelve months may be allowed for other living arrangements if you live with a partner and children. At the end of the twelve months, the property will undoubtedly have to be put up for sale, enforced by a Court order if necessary. If you own the property with someone else, they may be able to make an offer to buy out your interest in the property from the Official Receiver.

• Lose control of your assets during the term of bankruptcy.
• Your credit rating is affected for many years after the annulment.
• You may be able to open a new bank or building society account but will have to disclose that you are bankrupt. The bank or building society may then impose conditions and limitations. Overdraft facilities or chequebooks must not be obtained, as they will be dishonoured. You must inform the Trustee of any funds available in the account, which exceed the everyday living expenses, for the Trustee to distribute among the creditors.
• Your employment could be affected (E.g., If you are a lawyer, charted Accountant, or Financial Advisor).
• A Bankruptcy Order does not cover certain debts such as student loans; therefore, you will still be responsible for paying these debts.

You may not:

• credit of £500 or more alone or jointly with another person without disclosing their bankruptcy.
• Conduct business directly or indirectly in any name other than that they were made bankrupt.
• Be involved directly or indirectly in promoting, forming, or managing a company without the Court’s permission.
• Hold certain public offices (E.g., Justice of the peace, member of parliament).

When you are discharged from being bankrupt, these constraints are ended.

You can keep:

You can keep any tools, books, vehicles (if low value) and other items of equipment needed personally in your employment or business. You will also be able to keep your clothing, bedding, furniture, and essential household items.

Bankruptcy petitions are usually presented either at the High Court in London or a County Court near where you live or trade.

A petition can be presented against you even if you are not present in England or Wales at the time, providing you usually live in or have a recent residential or business connection with England or Wales.

The address and telephone number of your local County Court are listed under ‘Courts’ in the phone book, where you should look for ‘Civil Courts – County Courts’ and not ‘magistrates’ Courts’. The Courts Service website at: https://www.gov.uk/government/organisations/hm-courts-and-tribunals-service  has an index of County Courts that will show you where the County Court has authority. However, you will need to contact the Court to determine if it has jurisdiction to hear a bankruptcy case.

Court will either hear your petition or arrange a time for the Court to consider it.

If English is not your first language and you need an interpreter, the Court will not be able to help you find one. You will have to do this yourself and pay the interpreter’s fees.

At the hearing, the Court can do one of four things:

• Stay (delay) the proceedings – often because the Court needs further information before deciding whether to make a bankruptcy order.
• Dismiss the petition – perhaps because an administration order would be more appropriate.
• Appoint an Insolvency Practitioner – if the Court thinks an Individual Voluntary Arrangement would be more appropriate. This will only be possible if your assets are more than £4000, your unsecured debts are less than £40,000, and you have not been bankrupted or made an Individual Voluntary Arrangement in the previous five years. If you do not wish to enter such an arrangement, you should inform the Court.
• Make a bankruptcy order. You will be bankrupt the moment the Court makes the order.

The Official Receiver is a civil servant and an officer of the Court. He is responsible for administering bankruptcies and will act as a Trustee of your estate unless a private sector Insolvency Practitioner is appointed.

One of the Official Receiver’s primary duties is to investigate your financial affairs for the time before and during your bankruptcy.

An Insolvency Practitioner can be appointed Trustee instead of the Official Receiver; they must be licensed and are usually accountants or solicitors. The Insolvency Practitioner is responsible for disposing of your assets and making payments to your creditors.

• When a bankruptcy order has been made, you must provide the Official Receiver with information relating to your financial affairs, such as a list of your assets (property, pensions, insurance policies etc.), amounts of each debt and to which creditor they are owed to, within 21 days.
• Any assets will then be handed over to the Official Receiver along with bank statements and insurance policies relating to your property and financial affairs.
• Any assets and income increases obtained during the bankruptcy should be declared to the Trustee.
• You must not obtain £500 or more credit from any person without disclosing that you are bankrupt.
• Any bank or building society accounts must no longer be used.
• You must not make any direct payments to your creditors.
• You may also have to attend Court to explain why you are in debt. If you do not co-operate, you could be arrested.