Bankruptcy Facts
In most cases, Bankruptcy petitions are made at the county court nearest to your place of home or business, or the High Court in London. You do not need to be present for the petition to be presented against you.
To declare yourself Bankrupt, you should contact the nearest relevant court. The contact details for all county courts are listed under Courts in the telephone book.
In most cases, excluding exceptional circumstances (such as an income support example), you will have to pay £120 as a court fee. In addition to this, you will have to pay the Official Receiver £250 towards the cost of administering the Bankruptcy order.
Once the Bankruptcy order has been confirmed, it is advertised in your local newspaper and the Official Receiver will provide written details of the order to a number of relevant organisations, such as your creditors.
If you own your own home, including joint mortgages, freehold and leasehold, your interest in the home will form part of your estate (or assets). Therefore, your home may have to be sold to pay off your debts.
Bankruptcy Restrictions
You may not obtain credit of £250 or more without the permission of the Official Receiver. This is not just borrowing money, but also includes Credit Cards and Store cards.
You are also unable to promote or form or direct a limited company without the court's permission, whether you were appointed formally or not.
You may open a new bank account, however, you must inform your bank that you have been declared bankrupt. You may face certain restrictions and limitations based on this information.
Terms of Bankruptcy
You will be discharged from bankruptcy usually after three years. There are exceptions, such as if your bankruptcy order refers to a certificate of summary administration. This will allow you to be discharged after two years.
However, if you have not carried out the duties stated in the bankruptcy order, there is a possibility that the court may postpone your discharge.
When you are discharged from bankruptcy, you are released from the majority of the stated debts at the beginning of the order. This excludes fines and any other debts that cannot be included in the Bankruptcy order, such as student loans debts.
Any assets that are owned before or during the bankruptcy that have not been dealt with by the Trustee by the time of discharge are still controlled by the Trustee, who can deal with the at ANY time in the future.
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