What is Bankruptcy
Bankruptcy is a legal status that usually lasts for 12 months and can be a way of clearing debts you can't pay. When you're bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (the companies/people you owe money to). At the end of the bankruptcy period, most debts are 'discharged' (cancelled).
Cost To Go Bankrupt
There are two fees you may need to pay to the court when declaring Bankruptcy:
- A court fee (currently £130), although this can be waived in some circumstances (if you’re on Income Support for example - court staff will be able to advise you).
- Deposit of £525 towards the cost of administering your Bankruptcy.
So the total cost to go bankrupt is £655
If you are married, you will each be required to pay these fees separately.
How To Go Bankrupt
If you are wondering how to go bankrupt the following will help:
To go bankrupt you need to get advice from people who know everything about all aspects of bankruptcy. Think about the impact of going bankrupt on your bank account; bear in mind, you will still have bills to pay. You will also need to determine whether your family or friends are likely to be affected. You also need to keep in mind that you can not go bankrupt for free. Further to this you will have to fill out the correct forms. The procedure is as follows:
• Complete the required forms (petition and statement of affairs).
• File the forms using the online bankruptcy application system and pay the fees listed above.
Bankruptcy, Is It Right For You?
Bankruptcy can be an effective way to solve personal debt, however it should always be considered as a last resort, and the Court will expect you to have considered any alternatives to bankruptcy that you may qualify for.