Bankruptcy Procedures
The first step in filing for bankruptcy is the Bankruptcy Petition. People wishing to declare themselves bankrupt must fill in a Debtor's Petition. You need to visit your local court to file a bankruptcy. Sometimes the people who you owe money to will force you to go bankrupt, this is a Creditor's Petition and is only fileable by people or companies who are owed more than £750 by you.
When your petition is filed, you will need to pay £370 to the court. This is made up of two fees, one that is a deposit made to the Official Receiver or O.R and the other is the Court Fee. If you do not end up becoming bankrupt, the deposit will be returned. The court fee is for the court's time and will not be refunded to you. When you have filed your Debtor's Petition, a date will be assigned for the court hearing. Several things can happen at this court hearing. The judge can delay the bankruptcy hearing for more information to be collected. The Petition can also be dismissed. Under certain circumstances, the court can appoint an IP or Insolvency Practitioner to see if you are eligible for an IVA or Individual Voluntary Arrangement. Lastly, the court can agree the bankruptcy petition and the bankruptcy can begin.
It should be noted that only at this final stage are companies and individuals who are owed money by you prevented from contacting you and attempting to bring legal action against you.
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