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Personal Bankruptcy UK - Frequently Asked Questions

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How to Become Bankrupt? - if you owe anyone £750 or more and that amount is unsecured, your creditor(s) has the right under the law to request that the Court act to make you bankrupt. They will have to prove to the Court that the money is owed and that the repayment terms are not being met.

For most individuals who are not in business, the risk of creditors forcing them into bankruptcy is very low. This is largely down to the cost to the creditor which is likely to be between £1500-£3000 when there may be little hope of recouping that money. It is far more likely that you will declare yourself bankrupt.

Anyone can go bankrupt. The first step is contact your local County Court or the High Court in London. You will find the address and telephone number of your local Court in the telephone book. You will have to ask the court for an application form. The court will also be able to provide you with further information.

You will normally have to arrange a meeting at the court with a member of the Official Receiver’s office where you will discuss all aspects of your application. If the Official Receiver believes that you should go bankrupt then you will be able to do so on the same day. You must expect to pay a fee to the court of between £250-£490 towards the court fee and administration of your bankruptcy.   Please see Advantages and Disadvantages of Bankruptcy.  Bankruptcy is a serious matter which should not be taken lightly. Before deciding if bankruptcy is right for you, you should take further advice either from the court or a professional debt advice company