If you owe a creditor £5,000 or more, they could obtain a bankruptcy order against you if you fail to pay them when they demand payment.
You could also apply to Court to have a bankruptcy order made if you wish to declare yourself bankrupt. If you do require assistance in making yourself bankrupt, we can help. We will ensure that bankruptcy is the correct route for you and we will point you in the right direction.
There are some professionals who will have consequences to face if they are made bankrupt. If you are one of the following and are considering bankruptcy, please take advice immediately:
When a bankruptcy order is made, the Official Receiver (or Trustee) will be appointed and will contact you in order to obtain information about your finances. This will include your assets and liabilities and your income and expenditure. They will normally ask you to attend a meeting and take any paperwork you have with you to help them to establish your financial position.
If you have a house, the Trustee will have three years to deal with this and will prefer to work with you on this. Solutions may be for a sale of the property, a sale of the bankrupt’s share of the equity to a joint owner, or if there is very little or no equity, it may be appropriate to do nothing. It is unlikely that a Trustee will force the sale of your residential property in the first 12 months if there are people living in it.
If you have surplus income, your Trustee would expect you to pay this to him for the benefit of the bankruptcy estate. You may be ordered by the Court to do this if you do not co-operate. This will be for three years.
If you have any windfalls, such as inheritance, bonuses from work or a lottery win, you would also be expected to make this available for your creditors.
The Trustee has a duty to look into your financial affairs to determine whether there has been any actions you have taken which would be to the detriment of creditors – such as gifting a property to a loved one.
A bankruptcy will normally last for one year.
The Insolvency Company
c/o Monahans
Hermes House
Fire Fly Avenue
Swindon SN2 2GA
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The Insolvency Company is a trading name of Monahans Professional Services Limited, registered in England and Wales at Hermes House, Fire Fly Avenue, Swindon, Wiltshire, United Kingdom, SN2 2GA
Steven Elliott is licensed as an insolvency practitioner in the UK by the Insolvency Practitioners Association (IPA). Gareth Buckley and Stacey Phipps are licensed as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales (ICAEW).
Company Registration Numbers 14541594
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