How to File for Bankruptcy in the U.K.

Step-by-Step Guide

1. 1

   Step 1: Consider options other than bankruptcy.

   The U.K. government encourages that you consider whether you have other options than bankruptcy.
   
   You can get free debt advice from a debt adviser by contacting the Money Advice Service.You can also complete an online questionnaire here: https://www.gov.uk/pay-off-debts/ Click on “Start now.” You will be asked about the following: amount of money you owe your assets your income
2. 2

   Step 2: Gather required financial information.

   Before sitting down to apply for bankruptcy, you should gather necessary financial information to use in the application.
   
   Collect the following:wage slips statement of pension or benefits utility bills other bills, such as credit card statements letters from an enforcement agent or bailiff , After a court finds you bankrupt, your name and address will be published in the London Gazette and the Individual Insolvency Register.
   
   If you are at risk of violence, you might want to withhold your address.
   
   You will need a judge to sign off on this.
   
   Complete application form
   7.1A and take it to the nearest court that handles bankruptcy, which you can find here: https://www.gov.uk/find-court-tribunal.
   
   You may have to pay a fee.
   
   The court will tell you.
   
   You must attend a hearing.
   
   You will be told when. , Visit https://www.gov.uk/apply-for-bankruptcy and click on the “Start now” button.
   
   You can only apply online and it costs £680.
   
   You may pay in installments.
   
   If you need help, contact the Insolvency Enquiry Line at 0300 678 0015, Monday through Friday, 9:00 am to 5:00 pm.
   
   You may also email [email protected]. , Within 28 days of submitting your application, the adjudicator should notify you whether you are bankrupt.
   
   However, you might be asked more questions so that they can properly assess your application.
   
   Within two weeks, you’ll receive a letter from the Official Receiver.
   
   This person manages your bankruptcy.
   
   You should also receive an information pack. , Some bankrupts must attend an interview.
   
   The purpose is to gather more information about your finances so that the Official Receiver can administer the bankruptcy.
   
   For example, the interview might cover the following:more details about your savings or pension confirmation about your debts and property why you became bankrupt whether you have any questions , You must follow all restrictions imposed on you, which will last for the length of the bankruptcy.
   
   You can be criminally prosecuted if you violate any of them.
   
   For example, you can’t do the following:borrow more than £500 without informing your lender that you are bankrupt manage, promote, or create a company without the court’s permission act as a director of a company without the court’s permission work as an authorized debt specialist manage a business with a different name without informing people that you are bankrupt , The Official Receiver might act as your trustee and sell your assets to pay creditors.
   
   Whether your assets will be sold depends on the asset.
   
   For example, the following rules generally apply:
   You can usually keep household items, such as clothing.
   
   You can also keep property you need for your job, such as a vehicle or tools.
   
   Your bank accounts will be frozen.
   
   However, the trustee can allow you to use money to buy food or cover other urgent needs.
   
   Also, your partner can access their share of a joint account.
   
   You may need to give up your home if you have equity in it (i.e., it is worth more than your mortgage).
   
   However, you can keep it if your equity is £1,000 or less.
   
   You can also delay the sale if you need to find a new place for a partner or child to live.
   
   If possible, you can also arrange for a partner to buy your half of the property., Depending on your income, you may need to pay your creditors under an Income Payment Agreement.
   
   This agreement can last up to three years.
   
   You will pay a percentage of whatever you have left over after paying for essentials (e.g., food)., Your bankruptcy ends with a discharge, which is typically automatic after 12 months.
   
   If you need a Certificate of Discharge, then you can get one from the court that handled your bankruptcy.The Individual Insolvency Register will be updated within three months.
   
   You must also apply to have your bankruptcy entry removed from the Land Registry and Land Charges.
3. 3

   Step 3: Determine if you need to hide your location.

4. 4

   Step 4: Apply for bankruptcy online.

5. 5

   Step 5: Receive your bankruptcy order.

6. 6

   Step 6: Attend an interview.

7. 7

   Step 7: Follow the bankruptcy restrictions.

8. 8

   Step 8: Hand over assets to be sold.

9. 9

   Step 9: Make monthly payments.

10. 10

    Step 10: Receive a discharge.

Detailed Guide

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