How to petition for your own bankruptcy

Bankruptcy is a serious matter. You do not have to become bankrupt just because you are in debt. Other options may be more suitable for you.

4. How much will it cost to make myself bankrupt?

There are three fees you may have to pay when you take your petition and statement of affairs to court:

• The court fee of £140. In some circumstances the court may waive this fee; for example, if you are on Income Support. If you are not sure whether you qualify for a reduction in the fee, or you are exempt from paying the fee, court staff will be able to advise you.
• The deposit of £310 towards the costs of administering your bankruptcy. This deposit is payable in all cases.
• The fee to swear the statement of affairs. In a county court, no charge is made to swear the affidavit, which is part of the statement of affairs. But in the High Court or before a solicitor there is a £7 charge.
• For an additional fee Debt Help UK offer a service to help you with your bankruptcy petition click here for help with paperwork.

If you are a married couple and you are both applying for bankruptcy, you will each have to pay separate fees. If you were in business as a partnership, each partner will have to pay separate fees, unless all the parties apply for a joint bankruptcy petition under the Insolvent Partnerships Order 1994 (Form 16).

The above fees should be paid in cash, postal orders, or by a building society, bank or solicitor's cheque. Cheques should be made payable to H M Paymaster General. Personal cheques will not be accepted.

5. Which court should I go to?

Not all courts can deal with bankruptcy matters. Bankruptcy petitions can be presented at the High Court in London, or in a county court which deals with bankruptcy matters. Generally you should take your petition for bankruptcy to the court that deals with the area where you have lived or traded for the longest period of time in the previous six months. If you live in one court district and run your business in another, you should go to the court dealing with the district where your business is, as this takes priority over your home address. If you are not sure which court to go to, you should telephone your nearest county court for advice.

The address and telephone number of your local county court is listed under 'Courts' in the phone book, where you should look for: 'civil courts - county courts' and not magistrates' courts. The Courts Service website at: http://www.hmcourts-service.gov.uk/ has an index of county courts which will show you the area where the county court has jurisdiction. However, you will need to contact the court to find out if it has jurisdiction to hear a bankruptcy case.

6. What will happen at court?

The court will either hear your petition straight away or arrange a time for the court to consider it.

If English is not your first language and you need an interpreter, the court will not be able to help you find one. You will have to do this yourself and pay interpreter's fees.

At the hearing the court can do one of four things:

• Stay (delay) the proceedings - often because the court needs further information before it can decide whether to make a bankruptcy order.
• Dismiss the petition - perhaps because an administration order would be more appropriate.
• Appoint an insolvency practitioner - if the court thinks that an individual voluntary arrangement would be more appropriate. This will only be possible if your assets are more than £2,000; your unsecured debts are more than £20,000; and you have not been bankrupt or made an individual voluntary arrangement in the previous five years. If you do not wish to enter into such an arrangement, you should inform the court.
• Make a bankruptcy order - the effect of the bankruptcy order, and the restrictions it places on you, are explained in The Insolvency Service booklet - 'Guide to Bankruptcy'. You will be bankrupt the moment the order is made by the court.

This booklet provides general information only. Every effort has been made to ensure that the information is accurate, but it is not a full and authoritative statement of the law and you should not rely on it as such. The Insolvency Service cannot accept any responsibility for any errors or omissions as a result of negligence or otherwise.

© Crown copyright 2001.
The information in this booklet is subject to Crown copyright protection. Source: 'Dealing With Debt - How to petition for your own bankruptcy' issued by The Insolvency Service in partnership with the Court Service.