Bankruptcy
Criteria:
Debt v Assets
The first criteria which is invariably met by a bankrupt is that their debts are greater than their assets.
At the same time your monthly disposable income after essential expenditure also has to be so low that it is simply not possible to meet the repayment demands of your separate creditors.
This means that it is not possible to make yourself bankrupt and walk away from your debts if you have significant assets or significant income to support your debts.
Take the Initiative
Secondly to make yourself bankrupt you need to take the initiative.
In practice this means you undertake the process by filing a bankruptcy petition.
This is known as the debtor's petition. In the process of filing you will be asked to pay £370 in costs to the court.
This amount is designed to cover the court fee and the official receivers deposit of £250.
If your petition is unsuccessful you will get the £250 back.
Beyond these criteria there are no other factors you have to satisfy. Whilst it is a simple process to undertake however the consequences are impossible to undo.
Use our FREE Credit Report to see if you are eligable for an IVA.
Bankruptcy: Main
Bankruptcy: Criteria
Bankruptcy: Considerations
Bankruptcy: Costs
Bankruptcy: Merits