Filing For Bankruptcy
What is a statutory demand?
A statutory demand is a warning shot. It is fired in the air and it threatens bankruptcy. Your creditor, the person you owe money to, issues you with a statutory demand saying you have twenty-one days to pay back all the money, or they could make you bankrupt. Generally, as I said, it's a warning shot. A statutory demand doesn't necessarily mean that they will make you bankrupt.
When should I file for bankruptcy?
Bankruptcy is a way of dealing with debts that you cannot pay. It's an insolvency position and it means that you're not in a position to repay all the debt that you owe. When you think you're in that kind of position, you need to consider all of your options. Once you've examined all the alternatives and you've decided that bankruptcy is the right option for you, investigate fully how to conduct your own bankruptcy. Seek professional advice if you need to.
Will it cost me to declare myself bankrupt?
Bizarrely, even if you are going to declare yourself bankrupt, it will cost you in order to do it. There is no such things as free lunch. There are court fees payable to file for bankruptcy. You might think: if I have to pay for it, I'm not going to. I'm going to let a creditor make me bankrupt, then I need not to pay a penny. However, it will be more expensive for a creditor to make you bankrupt. If they think that by making you bankrupt they are not actually going to get any of their money back, they are unlikely to make you bankrupt. What is more likely is that the creditor will continue to harass you to encourage you to repay the debt
Can I get help paying court fees for the bankruptcy process?
You can get help to pay for the court fees for bankruptcy. If you're on state benefits you can complete paperwork, which actually ensures that the bankruptcy court fees are reduced, though they are not totally eradicated. You will still have to pay in order to go bankrupt. What you should do is perhaps investigate if your union or welfare office can assist you in your time of financial need.
Do I need to have a fixed address when filing for bankruptcy?
You don't need to have a fixed address when filing for bankruptcy, but you do need to provide an address which the Official Receiver can use in order to write to you. That could be a PO box or it could be in care of someone.
Do I have to attend court if I'm filing for bankruptcy?
Bankruptcy is a formal process; it is a court process. You are expected to attend court. You need to swear an affidavit that all of the bankruptcy documentation that you have completed is accurate and correct. You do this in court. However, there are some circumstances where you would not have to attend the court. This may be the case if you actually give a power of attorney to let someone else represent you, and the courts look favourably upon a situation where perhaps you are too ill to attend the court. It is all situation by situation. But generally you are expected to attend court during bankruptcy proceedings.
Can someone else file for bankruptcy on my behalf?
In some situations, if you are unable to conduct your own bankruptcy, you can give a power of attorney allowing someone else to file for your bankruptcy. However, it is quiet strange that when you file for bankruptcy, there is no proof of identity asked, so actually you could turn up in court tomorrow and file for your best friends bankruptcy and no one would be any the wiser. Obviously this is not recommended, it would be fraud, but strangely, proof of identity is not required for bankruptcy.
Can I have my bankruptcy cancelled or reversed?
If bankruptcy was not part of your plans, and yet you're made bankrupt, it can seriously ruin your day! We've met situations where people were disputing council tax payments and the council made them bankrupt, and you're looking at someone who owns their own home being made bankrupt for £3000 or less. It can be very serious. It can be very expensive to get your bankruptcy cancelled or annulled, but it can be done. What you need to do is act very quickly and get specialist advice from bankruptcy advisors who are working on your side.
Is it possible to file for bankruptcy more than once?
Bankruptcy is a right in law. Your first bankruptcy is relatively straightforward. You can declare yourself bankrupt more than once. However, it's not a recommended course of action. It's seriously frowned upon by the courts if you're regularly declaring yourself bankrupt. If you're going to declare yourself bankrupt, try to do it only once.
Do I have to agree to be declared bankrupt?
You don't have to agree in order to being declared bankrupt. There can be situations where if you've ignored your post, you've ignored a statutory demand, you'll suddenly find a letter from a creditor or from the Insolvency Service telling you that you've been made bankrupt. You only have to owe more than £750 to be declared bankrupt.
