If you think you need to go bankrupt, then you probably do.
Every day in speaking with people, be it face-to-face, in our live chat facility, or on the phone, I hear, ‘I think I need to go bankrupt’. Something I have said for years is this: If you think you need to go bankrupt, then you probably do. I’m not being funny or cruel, it is just a fact. As animals we know certain things. If we are hurt or ill, we can tell, if our finances are of such we cannot make ends meet, who knows better than ourselves.
So once an initial assessment is done to see if bankruptcy is the strongest option, invariably the next question is, ‘How do I go bankrupt?’ Fair question and easily answered as the process was simplified a few years ago. The mechanics of going bankrupt are easy to explain and for some to understand, but the forms are what usually throw people for a loop, they can be daunting to some.
So, the process in a clear, concise straight forward manner:
First you obtain the forms and complete them. You then file them at your local County Court, or High Court in London, and pay the appropriate fees. A judge declares you bankrupt. An Official Receiver is appointed to review your forms and case; their job is to see if you have any assets that can be liquidated to pay into the bankruptcy and if you have any surplus income after your basic living expenditures to pay into the bankruptcy. If you have neither, then in 12 months your bankruptcy is usually discharged, meaning it is over and you are starting out fresh.
Now I realise that this is a simplified version of what occurs, but then this is bankruptcy 101.
So what do YOU do now that you know the mechanics and have made the decision to go bankrupt? Do some research and review more of the details as to what is involved and what to expect. You can research bankruptcy online here in the Bankruptcy FAQ pages. There is a wealth of information on bankruptcy there.
Second review the forms, which can be obtained online or in some instances by contacting your local County Court.
And lastly, my recommendation to most people is get assistance in completing the forms. The last thing you want during this time is to not have your case accepted due to the forms being incomplete, or have something flag things and make the process more difficult than it has to be. You can get help here in reviewing your forms or actually having your bankruptcy forms completed for you.
You can use whatever service you chose or whomever you feel comfortable with, but get help if you are not 100%, and I mean 100% comfortable, with completing the forms.
A couple of questions, that while covered in the above link I have included, are asked almost every time I speak with someone about bankruptcy.
How much does it cost to go bankrupt?
The fees for filing for bankruptcy are £495, (£507 in London) due at the time of filing. If you earn less than 14K PA or are receiving benefits, the fees can be waived by £150, by filing form ex160; so £345 is due at the time of filing (£357 in London).
How am I supposed to pay that much money if I cannot pay my debts?
If you are working and earning wages, many people cease making payments to the debts and save for the fees.
Can I keep my car?
You can be allowed a car in bankruptcy, but a few things need to occur. You need to show a need for the car and it must be of modest value, nothing over 2K. If the car is on finance, then the finance company must be OK with you being bankrupt and the monthly payment must be reasonable.
Again, this is just a quick overview and only addresses a couple of key questions people have. But it should give you an idea as to what to expect, and if you follow the links I have provided, you can obtain even more information.
So once an initial assessment is done to see if bankruptcy is the strongest option, invariably the next question is, ‘How do I go bankrupt?’ Fair question and easily answered as the process was simplified a few years ago. The mechanics of going bankrupt are easy to explain and for some to understand, but the forms are what usually throw people for a loop, they can be daunting to some.
So, the process in a clear, concise straight forward manner:
First you obtain the forms and complete them. You then file them at your local County Court, or High Court in London, and pay the appropriate fees. A judge declares you bankrupt. An Official Receiver is appointed to review your forms and case; their job is to see if you have any assets that can be liquidated to pay into the bankruptcy and if you have any surplus income after your basic living expenditures to pay into the bankruptcy. If you have neither, then in 12 months your bankruptcy is usually discharged, meaning it is over and you are starting out fresh.
Now I realise that this is a simplified version of what occurs, but then this is bankruptcy 101.
So what do YOU do now that you know the mechanics and have made the decision to go bankrupt? Do some research and review more of the details as to what is involved and what to expect. You can research bankruptcy online here in the Bankruptcy FAQ pages. There is a wealth of information on bankruptcy there.
Second review the forms, which can be obtained online or in some instances by contacting your local County Court.
And lastly, my recommendation to most people is get assistance in completing the forms. The last thing you want during this time is to not have your case accepted due to the forms being incomplete, or have something flag things and make the process more difficult than it has to be. You can get help here in reviewing your forms or actually having your bankruptcy forms completed for you.
You can use whatever service you chose or whomever you feel comfortable with, but get help if you are not 100%, and I mean 100% comfortable, with completing the forms.
A couple of questions, that while covered in the above link I have included, are asked almost every time I speak with someone about bankruptcy.
How much does it cost to go bankrupt?
The fees for filing for bankruptcy are £495, (£507 in London) due at the time of filing. If you earn less than 14K PA or are receiving benefits, the fees can be waived by £150, by filing form ex160; so £345 is due at the time of filing (£357 in London).
How am I supposed to pay that much money if I cannot pay my debts?
If you are working and earning wages, many people cease making payments to the debts and save for the fees.
Can I keep my car?
You can be allowed a car in bankruptcy, but a few things need to occur. You need to show a need for the car and it must be of modest value, nothing over 2K. If the car is on finance, then the finance company must be OK with you being bankrupt and the monthly payment must be reasonable.
Again, this is just a quick overview and only addresses a couple of key questions people have. But it should give you an idea as to what to expect, and if you follow the links I have provided, you can obtain even more information.
