What is Bankruptcy?

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Bankruptcy is one way of dealing with debts that you cannot pay. Bankruptcy should not be taken lightly as it may mean that you could lose your home and anything else you own of value i.e. such as your car if it is worth more than £1,000. To be able make yourself bankrupt, you must owe at least £750.00 and you must petition (apply) to the Court on the ground that you cannot pay your debts. You must fill in a bankruptcy petition and a form giving full details of your income and expenditure and details of any property and goods you own. One of our Debt Action advisors will help you to fill out these forms. The court will then decide whether to make the bankruptcy order which will place all of your finances with the Official Receiver who will carry out an overall assessment of your situation. You do not have to become bankrupt just because you are in debt, there may be other options available to you. For further information, you should contact one of our Debt Action advisors.