Petition for bankruptcy

To petition for bankruptcy you have to complete an application form and hand it into your local county court in triplicate along with your fee.

In England and Wales, the fees for filing a personal bankruptcy petition are as follows:

• £175 court fee
• £525 official receiver’s fee

Those on a low income or receiving certain benefits might have the court fee waived, but the official receiver’s fee is payable in all circumstances.

What happens next?

Once you have petitioned for bankruptcy, the official receiver looks into your finances and decides if you should make payments towards your debts. In some cases you have to pay a monthly contribution for up to 3 years. This is called an income payment arrangement. It is payable if you have available income after you have paid all your household bills and essential living expenses.

You will not have to pay anything if you cannot afford to do so and you will always be left with enough money to live on each month.

The official receiver will investigate your financial affairs for the five-year period leading up to your bankruptcy.

They may arrange for certain assets to be sold off to pay towards your debts, but you will be able to keep anything that is essential for your day-to-day living.

The term of personal bankruptcy is usually 12 months.

Bankruptcy advice

If you are considering petitioning for bankruptcy, get professional debt advice first. Our online debt counselling service, CCCS Debt Remedy, is completely free and can identify the very best debt solution for your circumstances.