This legally binding debt solution involves your assets being transferred to the Official Receiver (subject to certain exceptions).
Bankruptcy is a form of personal insolvency used to wind up your affairs if you’re unable to pay your debts. Most people who apply for bankruptcy choose to do so voluntarily. However, bankruptcy orders can also be obtained by creditors against people who do not pay their debts (if they can prove the individual owes them more than £5,000).
During bankruptcy, your assets will be sold to pay creditors. The process usually lasts for one year, after which all your remaining debts are written off. Although you are likely to be free from bankruptcy after a year, this does not mean that any unsold assets will belong to you. These will still be held by the Official Receiver or your Trustee in Bankruptcy and will be sold to pay your debts.
Is bankruptcy an option for me?
Bankruptcy is generally only suitable if you are not able to pay your debts in a reasonable period of time. Whilst the stigma associated with bankruptcy has largely disappeared in recent years, Individual Voluntary Agreements (IVAs) are still preferred by most people as an alternative to going bankrupt. When bankrupt, you will not be able to direct a company and you will be restricted from obtaining loans or credit.
How do I make myself bankrupt?
The process for making yourself bankrupt is straightforward. You can now complete the application online. A fee of £680 is payable. The court will usually grant the bankruptcy order on the day you file the forms.
Let Bennett Jones guide you through bankruptcy
Bankruptcy can be an unsettling process. Bennett Jones is here to provide support at this difficult time, so you can take positive steps to recovery. If you are still uncertain whether bankruptcy is the best option for you, contact our team. We’ll provide you with the information you need to make an informed decision. You can also send a message using our contact form and we’ll call you back at a convenient time for you.
Bankruptcy for company directors
If you are the sole director of a limited company and declare bankruptcy, you must cease acting as a director. Any shares you own in a company will be passed to the Trustee of your estate to sell or wind up. The Official Receiver (OR) will be appointed to deal with your bankruptcy. The OR will act as trustee of your estate unless an insolvency practitioner is appointed. If the company has multiple directors, you should inform the other directors immediately and resign your position with Companies House.
Bank accounts
You must give the Bankruptcy Trustee your bank cards, cheque books and credit cards. Your accounts will be frozen but the trustee may release any money you need urgently to live on, for example, to buy food. Your spouse or partner’s share of any money in a joint account will be released. After the bankruptcy order has been made you may open a new bank account. You should tell the bank that you are bankrupt.
June 2024, Lynne
![5stars 5stars](https://bennett-jones.co.uk/wp-content/uploads/5stars.png)
Patient and understanding debt management advice. From the beginning to the end of my five year journey to take control of my debt everyone at Bennett Jones have been nothing but kind and supportive. Always supporting me without making me feel uncomfortable about my circumstances and explaining everything very patiently, showing understanding of how difficult this can be for someone to undertake and guiding me gently through concerns and daft questions. Thank you for your assistance in taking back control and making a fresh start after a particularly challenging time in my life.
May 2024, Adam
![5stars 5stars](https://bennett-jones.co.uk/wp-content/uploads/5stars.png)
I would like to thank Bennett Jones for helping me with my IVA proposal. I'm a glass half full person but the realities of life and unforseen circumstances with finances had taken its toll. Bennett Jones have helped me to have a fresh start and take control back of my finances. It's a huge load lifted off my shoulders.......
April 2024, Beverley
![5stars 5stars](https://bennett-jones.co.uk/wp-content/uploads/5stars.png)
I would like to thank Bennett Jones for all their help over the past 5 years.. I was in a pretty dark place financially. And through the debt advice helpline I found Bennett Jones.. From start to finish they have been professional sympathetic and always helpful. I've recommended friends who are also happy with their service. If I could give more than 5 stars I would.