Bankrupsy is a government scheme

Bankrupsy Explained

Call Money Advice Direct on 0800 074 6918 or apply online for advice on how to solve your debt problem or for bankrupsy advice.

In the UK anyone owing more that £750 can file for personal bankruptcy to clear debts. There are actually 2 ways to go bankrupt:-

Filing your own bankruptcy petition

A form (a debtor's petition) can be downloaded from the Insolvency Service website or obtained from county courts with bankruptcy jurisdiction.

When completed the form should be taken to the county court nearest to you that has bankruptcy jurisdiction. A fee of £150 is payable, although this can be waived if you meet specific criteria, when you file the petition.

A deposit of £345, for the Official Receiver's work, is also payable at this time. This amount cannot be waived.

A creditor making you bankrupt

Your creditors can present a creditor's petition if you owe them an unsecured debt of over £750.

Once bankruptcy proceedings have started, you must co-operate fully even if it's a creditor's petition and you dispute their claim. If possible you should try to reach a settlement before the petition's due to be heard - doing it later can be difficult and expensive.

Some of the implications of going bankrupt are:

• It will cost you money (up to £500) to go bankrupt
• The bankruptcy process can be embarrassing and distressing.
• Bankruptcy can effect your future.
• All assets of the debtor then vest in the Official Receiver. These assets must be realised for the benefit of your creditors.
• Bankruptcy can effect your marriage or relationship.
• Any windfall/inheritance received prior to or during the life of the bankruptcy, must be paid to the Official Receiver/Trustee in bankruptcy to contribute towards or satisfy the debts owed to your creditors. Should the windfall/inheritance exceed the amount due to your creditors, then the balance will be returned to you by the Trustee in bankruptcy.
• Whilst you are bankrupt, you can't apply for more credit
• More bankrupsy Implications

Common Misspellings of bankruptcy:-

• Bankrupty
• Bancraptcy
• Bancrupsty
• Bankrupcy
• Bancrupsy
• Bakruptcy
• Bankrupsy
• Bancruptcy
• Bakrupcy
• Bancrupcy
• Bancruptsy
• Bakruptsy
• Bankruptsy

If you wish to discuss a getting personal bankruptcy please call freephone 0800 074 6918. The UK Insolvency Helpline is able to offer help via telephone or online.

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