What You Need To Know About Bankruptcy - Part 2

Applying for bankruptcy:

You have to ask (petition) the court if you want to be declared bankrupt. They will decide whether or not to allow it. If they do, they will issue a bankruptcy order against you. You will then be officially bankrupt.

Fees:

The fees are:-

• £525 for managing your bankruptcy.
• £175 for court costs, if you are on income support you may not have to pay this - court staff will advise you.

You can pay using cash, postal orders or a building society , bank or solicitors cheque made payable to Her Majesty's Courts & Tribunal Service.

The Court will not accept your petition unless the fees are paid.

Restrictions of bankruptcy:

If you are made bankrupt by the court you have to follow 'bankruptcy restrictions'. This means you can't:-

• borrow more than £500 without telling the lender you are bankrupt.
• act as a director of a company.
• create, manage or promote a company without the court's permission.
• manage a business with a different name without telling people you do business with that you're bankrupt.
• work as an insolvency practitioner (an authorised debt specialist).

How log do the restrictions last and can they be extended?:

• The restrictions usually last for 12 months from the date the court made you bankrupt.
• Bankruptcy restrictions can be extended if you are careless or dishonest behaviour caused bankruptcy. For example, you tried to hide assets or you got credit using false information.
• The Official Receiver will tell you if the restrictions are going to be extended.

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