Bankruptcy can be initiated either by you personally or by one of your creditors. If you are applying yourself you can do so through an online application form via GOV.UK and there is no longer a need to apply to court.
A creditor can only apply for a bankruptcy order if you owe them more than £5,000 and they will have to apply to court in order to gain a bankruptcy order against you.
An employee of the Insolvency Service (part of the Department of Business Energy and Industrial Strategy) called the Official Receiver is appointed as Trustee and will either deal with your assets or appoint an independent Insolvency Practitioner, like those at Milsted Langdon, to act as your Trustee.
The bankruptcy will normally last 12 months. However the Official Receiver will review the reasons for your bankruptcy and your conduct prior to it and in certain circumstances may apply to court for this to be extended for up to 15 years.
The Trustee is tasked with selling your assets; including property, investments and other valuable assets for the benefit of your creditors. In addition, if you have surplus income, after the payment of basic domestic expenses you may be required to make contributions into the bankruptcy for a period of three years.
Furthermore, whilst bankrupt, there are certain restrictions that will apply such as not being able to borrow more than £500 without disclosing that you are bankrupt and not being able to act as the director of a limited company.
There is a wealth of information about bankruptcy on line at GOV.UK but if you would like to contact one of our team, please feel free.