How do I declare myself bankrupt?
If you believe that declaring yourself bankrupt is your only option, you may understandably find the prospect of doing so extremely overwhelming. There is conflicting information about bankruptcy in the UK, which we understand is frustrating given that this is often an already complex subject for individuals.
The process of declaring yourself bankrupt can be made easier by instructing a professional to help explain the process and explain each step swiftly and discreetly while protecting your financial interests and reputation. We will help you confidently approach the next steps, assessing your needs in both the long term and the short term.
In order to declare yourself bankrupt with the certainty that it’s the right option for you, it is essential that you clearly understand what it means to declare bankruptcy and check that you are eligible before proceeding with an application.
You must also understand what to expect after your application has been accepted in order to fully understand if it’s the right move for you. The more you know, the better equipped you are to prepare for bankruptcy and its lasting implications.
What does it mean to declare bankruptcy?
Declaring bankruptcy means that an individual is taking the step to recognise their inability to pay debts. In the UK, if you declare bankruptcy it means your assets could be used to pay off your creditors. In the majority of cases, after a year of being bankrupt, you will usually be discharged from bankruptcy.
Declaring yourself bankrupt also means relinquishing control of your assets as either an official receiver or insolvency practitioner will be appointed as Trustee in Bankruptcy (“Trustee”) and take control of your assets.
The Trustee may sell your assets and use the proceeds to pay the costs of the bankruptcy before paying your creditors. Bankruptcy does not cover all debts, so declaring bankruptcy will not cover, for example, student loans, court fines and maintenance payments.
The consequences of bankruptcy can affect your credit rating, ability to borrow money, and job opportunities. Before you make any decisions, seek bankruptcy advice in order to ensure that you fully understand the consequences.
Am I eligible to declare myself bankrupt?
There is no minimum debt threshold for an individual to declare themselves bankrupt. However, if you owe more than £5,000 to a creditor, they can present a bankruptcy petition against you.
As a general rule, if you cannot repay your debts, then you are eligible to declare yourself bankrupt in the UK. You can also declare yourself bankrupt in England or Wales if you live outside the UK, provided you lived in England or Wales or had a business there at some point in the last three years.
The Bankruptcy Order made in England and Wales may not be recognised in countries outside the UK. You cannot declare yourself bankrupt in England or Wales if you live in Scotland or Northern Ireland.
How do I apply for bankruptcy in the UK?
Understanding how to declare bankruptcy is essential to navigating the procedure with peace and efficiency. To apply for bankruptcy in the UK, you will need to complete an online application through the Gov.UK website, where you’ll be asked to provide detailed financial information, including your income, outgoings, and debts.
Once you have completed a form, someone who works for the Insolvency Service (called an “adjudicator”) will assess the application and information that you provided to check if your application meets the requirements for bankruptcy. If the adjudicator decides you can be made bankrupt, your application will be accepted, and a bankruptcy order will be issued.
If you’re feeling uncertain about whether or not you should apply, then consider seeking professional bankruptcy advice from Isadore Goldman.
What happens after I submit my application for bankruptcy?
A Trustee will be appointed to manage your debts and assets. Your Trustee may also request that you make payments towards your debts should your income reasonably allow for it.
You’ll need to prepare for how going bankrupt will directly affect your credit score for the next six years at a minimum, as well as additional restrictions on your ability to borrow money and enter into other financial dealings.
The impact on your credit score and reputation can be considerable, so you are strongly advised to get bankruptcy advice early on in order to understand the full and lasting consequences of bankruptcy.
Contact our solicitors for bankruptcy advice
Our solicitors at Isadore Goldman are highly experienced in helping individuals. No matter how extreme your situation feels, we can find a way to help you, providing expert legal guidance and insights.
With offices located in London, Norwich and Portsmouth you can obtain immediate expert advice on bankruptcy. To arrange an appointment, please email us at info@isadoregoldman.com.