At present there are two main ways to be made bankrupt:
Debtor's Petition: This is where you make yourself bankrupt / go bankrupt yourself. To do this you must contact your local court to find out where the nearest county court filing bankruptcy is situated. At present you have to pay £150 court fee and £325 deposit to file for bankruptcy. These fees may change.
Creditor's Petition: If you owe £750 or more then they can make a creditor's petition for your bankruptcy at a county court.
Bankruptcy Order: A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor's claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made is both difficult and expensive.
Where Is The Bankruptcy Order Made?
Bankruptcy petitions are usually presented at the High Court in London or at a county court near to where you trade or live. A petition can be presented against you even if you are not present in England or Wales at that time. This can happen when:
You normally live in, or within the previous 3 years have had residential or business connections with, England or Wales.
Sometimes government departments start bankruptcy proceedings in the High Court in London or in one of the District Registries. If you did not trade or do not live in the London area, your case will usually be transferred to the appropriate local county court and, if a bankruptcy order is made, it will be dealt with by the local Official Receiver.
Once the bankruptcy order has been made, it is advertised in The London Gazette (an official publication which contains legal notices) and in a local or national newspaper (or both). In addition the Official Receiver will give written notice of the order to a number of organisations.
