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Insolvency Bankruptcy

Frequently Asked Questions

How do I make an individual bankrupt?( + expand info )

  • What is bankruptcy?
  • The court can make a bankruptcy order against an individual who fails to pay their debts. A bankruptcy order makes sure that the assets of the bankrupt are shared out fairly among the creditors and imposes certain restrictions on the bankrupt.
  • How do I prove to the court that an individual cannot pay its debts?
  • From the 1st October 2015, there are two ways to prove if a creditor who is owed at least £5,000 or a share of debts totalling at least £5,000, owes you money. Firstly you can serve a "statutory demand" for the money due. If the statutory demand is not paid or secured (for example, by a guarantee to provide something else of the same value); or a settlement is not agreed, within 21 days, and the debtor has not applied for the statutory demand to be set aside you can present a petition. Alternatively you must get a sheriff's or bailiff's statement showing that you have got a court judgment for the money and that the sheriff or bailiff couldn't recover enough assets to pay the debt.
  • Which statutory demand form do I use?
  • The forms for the statutory demand are Form 6.1 (IN6_1) which is to be used for a debt for a specific amount which is payable now. Form 6.2 (IN6_2) which is to be used for a debt of a specific amount which is payable now following a judgment or order of court, and Form 6.3 (IN6_3) which is to be used for a debt that is payable in the future.
  • How do I present a bankruptcy petition?
  • You cannot just complete the petition and present it to the court. Yyou to prove you are owed at least £5,000 and carry out searches to check if the debtor has had any bankruptcy petitions against them in the past 18 months. The petition must also be served on the debtor, and any statements of truth are lodged at court verifying the bankruptcy petition and that it has been served on the debtor.

Can I petition for my own bankruptcy?( + expand info )

  • How do I petition for my bankruptcy?
  • You will need to complete a petition (IN6_27), this form is your request to the court for you to be made bankrupt and includes the reasons for your request, and a statement of affairs (IN6_28) this form shows all your assets (anything that belongs to you that may be used to pay your debts) and all your debts, including the names and addresses of the creditors and the amount you owe each one. This form also contains a Statement of Truth that you will need to complete. If you are dealing with a county court, the court will need the completed forms and 2 copies of each before it can accept your petition for bankruptcy. When you have completed both forms and have the fees ready, you can go to the court and ask for your petition to be dealt with.