Frequently Asked Questions
Bankruptcy
What will happen at court?
Once you have filed your documents it may be practical to hear your case immediately or more likely a time will be arranged to hear your case. If you require an interpreter this is something the court can help you with. It is though an expense you will have to pay yourself. Once the court has heard your petition one of four outcomes will occur:
- The first outcome is a Stay (delay) the proceedings - This often occurs as the court needs more information to decide whether to grant a bankruptcy order.
- The second outcome is to dismiss your petition for bankruptcy. This may occur as a feeling exists that you would be better off with an Administration order or because your assets simply do not warrant a Bankruptcy Order being granted.
- A third outcome is for the court to appoint a professional known as an Insolvency Practitioner. This they will do if a belief exists that an Individual Voluntary Arrangement is a better outcome for your circumstances. This will only be possible if you have higher levels of debt. More specifically you will need to have assets of more than £4000 and unsecured debts in excess of £40,000.
- The final outcome will be for the court to grant you a bankruptcy order - This may be what you want but you will need to understand a significant amount of restrictions may be placed upon you. Importantly you will be made Bankrupt immediately. This means the moment you walk out of the court you will be Bankrupt.
Who should I talk to before I go down the route of bankruptcy?
What are the alternatives to bankruptcy?
How do I petition for bankruptcy?
How much will it cost to make myself bankrupt?
Who will deal with my bankruptcy?