This is a helpful guide on what to do when you become bankrupt. In order to be declared bankrupt, you must first be legally recognised as such by a court order. Here are the steps to take next and some useful links to more information on what it all means and what you need to do.

1. A Guide To
Filing For Bankruptcy
By Jeff Nevil

2. What is Bankruptcy?
Bankruptcy occurs when an individual or
company is unable to repay the debts it owes.
In order to be declared bankrupt, you must first
be legally recognised as such by court order.

3. This usually happens through:
1: Applying to the court directly and filing for
bankruptcy if you are unable to pay your debts
2: Your creditors can apply to have you
declared bankrupt if you are unable to repay
them within your agreed terms.

4. Step 1: Getting the Right
Documents
In order to file for bankruptcy, you’ll need two crucial
forms:
• Debtor’s Bankruptcy Petition Form
• Statement of Affairs (Debtor’s Petition)
Key details you’ll need to include are previous
addresses, information on your current employment,
and details of the creditors / lenders to which you owe
money.
You can get all the relevant information on your
creditors from letters you have received from them, or
you can call them and request their details.

5. When filling in the Causes of Bankruptcy section in both of
these forms, you are required to provide as many details as
possible. Putting the reason down simply as ‘due to recession’
is likely get your application ignored, so explain exactly what
has happened.
Include details of:
• Relationships ending
• Higher living costs
• Redundancy / firing
• Illness
• Bereavement
• Reliance on credit or borrowing cycle

6. Step 2: Paying a Bankruptcy Fee
Unfortunately, another mandatory part of filing for
bankruptcy includes paying two fees:
• Official Receivers Fee - £525 (paid to the Insolvency
Service)
• Court Fee - £175
Total = £700
You can pay these fees in cash to the court, by postal
or bank order, building society, solicitors or charity
cheque. Currently, the court does not accept personal
cheques, credit or debit card payments.

7. How can you find the money?
Finding the money can be especially difficult during
a bankruptcy filing, but there are several ways to
find or save the money:
• Stop paying your creditors, as you’ll soon be
filing for bankruptcy to alieve yourself of their
debts.
• Borrow from family or friends, and ensure they
are payed back in the bankruptcy administration
by informing your official receiver.
• Certain unionised work forces, such as the
police and army, can help towards your
bankruptcy fee if you can adequately
demonstrate your financial situation.
• Sell any assets you own towards the fee.

8. Step 3: Going to Court
Don’t panic! You’re not going to be in a packed
courtroom speaking in front of an entire jury.
You’ll only need to hand over your bankruptcy fee
and paperwork (bring three copies of each form)
to the judge and wait whilst your documents are
checked.
You may be called in to clear up any
discrepancies, but apart from that you should
receive your bankruptcy order number the same
day. You can then pass this onto your creditors.

9. Tips
Put a cap in your spending, and ensure you
have properly budgeted both personally and
professionally, whether through personal
financial auditing or business budgeting
software.

10. Tips
You may also receive a call from an Official
Receiver after going to court. It is at this point
you can work out an Income Payment
Agreement to begin clearing your debt.

11. Tips
Ensure you stick to the terms of your bankruptcy
and be honest with the court, or you could be hit
with a Bankruptcy Restrictions Order (BRO) which
means you’ll need to come in for another court
hearing.

12. Follow Me
For more hints & tips
follow me on Twitter:
@JeffNevil