Bankruptcy

Are you in a position where your creditors are constantly pressing you for payment? Do you find that after your day-to-day living costs, you have no money with which to repay your creditors?  If so, Bankruptcy could be the ideal solution for you.

Bankruptcy is a legally declared inability of an individual to repay their creditors.  With the free and easy approach to lending that we have seen in recent years, people from all walks of life and backgrounds have accrued debts that they can no longer manage.  Meaning that bankruptcy is no longer a taboo procedure as it once was, many thousands of people just like you enter bankruptcy each year.

Bankruptcy is a court process, operated in conjunction with the Official Receiver and, if you have substantial assets to realise, a licensed insolvency practitioner will also be appointed.

This is generally a twelve-month process, where you exit debt free.  Though if you have a regular income that exceeds your basic domestic needs, you may be asked to make an income payment each month into the bankruptcy estate for a period of 36 months.

However, bankruptcy, as a debt solution is often chosen as a last resort. This is especially the case with property owners or those in certain professions where it may not be possible to continue in your chosen career if a bankruptcy order is made against you. Certain professions and licensing bodies prohibit individuals from working and you are also not able to act as a company director. If you are in partnership, this will be dissolved upon the making of a bankruptcy order. If you are a sole trader, you may struggle due to the effect of the bankruptcy on your reputation.

Seeking Bankruptcy Help and Advice

Remember that just because you are in debt does not mean that you need to go bankrupt, it may be more appropriate to look into Debt Management or an Individual Voluntary Arrangement.

It is necessary to seek professional advice before filing for bankruptcy as bankruptcy law is complex and there are often unforeseen consequences that are not considered before the bankruptcy order is made. Bridgestones are ideally placed to offer that advice.

You can contact Bridgestones, and an experienced member of staff will discuss your circumstances with you.

An assessment will be made and all options available to you will be explained, including any consequences that may occur if you decide to proceed with filing a Bankruptcy Petition.

Once you are confident that this is the right solution for you, we are able to advise you how to proceed.

The Bankruptcy Process

You will need to complete a Bankruptcy Petition and a Statement of Affairs. These documents will allow the District Judge to decide whether or not to make the Bankruptcy Order against you.

These forms will detail all assets and liabilities as well as requiring you to answer more specific questions surrounding your personal circumstances.

You will be required to provide the completed forms and two copies of each at your local County Court (or the High Court) and funds in the sum of £510 will need to be provided (£522 in the High Court). You should contact the relevant court to arrange a time for the bankruptcy petition to be heard by the Judge.

It is important that you have sought advice, as the Judge will need to be certain that you fully understand all the consequences of bankruptcy.

Once the Bankruptcy Order is made, the Court will contact the Official Receiver who is an officer of the Court. The Official Receiver will administer your estate and investigate your conduct. It may be necessary to have a face-to-face interview with the Official Receiver. It may be that the Official Receiver appoints a Licensed Insolvency Practitioner as Trustee to take possession of your assets and realise them.

Client Testimonials

We both can't thank you enough for all the help you have given to us. We both feel now we can get our lives back on track and look forward to a better life. You have all been brilliant. Thank you.

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