Bankruptcy Petition

How does someone become bankrupt? Under UK Bankruptcy law, there are 3 ways.

The 3 routes to Bankruptcy.

  • Creditor application to the court (Creditor Petition).
  • Debtor application to the court, ie applying for your own bankruptcy (Debtor Petition).
  • IVA Supervisor application to the court in the case where the debtor has defaulted on the IVA and alternative arrangement can't be agreed.

Debtor's Petition.


Debtor Bankruptcy
Petition form (6.27)


Statement of
Affairs form (6.28)


Statement of
Affairs Guidance


Application for
court fee
remission (ex160)

Petitioning one's own bankruptcy requires the debtor to complete a bankruptcy petition form (called form 6.27) and a statement of affairs form (called form 6.28).

Statement of Affairs form.

The Statement of Affairs form requires detailed information, including valuation of assets which may not be know without seeking professional help.

For residents of England and Wales, both forms are to be completed and presented to the most local court with bankruptcy jurisdiction. For those not living or domiciled in England or Wales, the forms are to be presented to the High Court in London.

Court fees of £150 and a deposit of £325 must be paid by the debtor at this point. Court fees can be waived when the debtor in on benefits and total income does not exceed £15,050 per year. Also, the fee can be waived if undue financial hardship can be proven. Fee wavier is by application via form ex160.

Depending on local practices a hearing may be immediate, later same day or by appointment at a later date.

The Court may refer the case to an Insolvency Practioner in the case where the possibility of an IVA being be more appropriate course of action needs consideration.

Creditor's Petition.

For a bankruptcy petition to be presented to the court, 3 conditions must be satisfied.

  1. The debtor must be domiciled or resident in England/Wales or be active in business in England or Wales, on the date of the petition, or at any time in the previous 3 years.
  2. The debt must be at least £750 to the creditor petitioning for bankruptcy.
  3. The debtor must have no realistic ability to repay the debt, or refusing to pay the debt. This is proven by the debt being served with a statutory demand, which has not been set aside or complied with..

The 4 types of Creditor Petition.

  1. Failure to comply with a statutory demand, debts payment currently due/overdue.
  2. Failure to comply with a statutory demand, debts payment due in the future.
  3. A court order execution returns unsatisfied. (eg bailiffs were not able to seize items of value)
  4. Default in connection with an IVA.

2 or more creditors may jointly petition.

Secured creditors may petition for the part of the debt this is not secured, or risk forfeiting their security.

The creditor's petition must state:

  • The amount owed, and if interest is owed how it has been calculated and the justification for this.
  • That the debt is for a liquidated sum payable now or at a specified future date and that the debtors has no realistic chance of making payment on time.
  • That the debt is unsecured.

If the petition is based upon a Statutory demand, then only that debt, plus interest accrued since the date of the demand was issued can be included.

If the petition is based upon an unsatisfied execution of a previous court order, then full details must be given including the value of any sum rasied by the Court's sheriffs or Bailiffs. It is not enough the bailiffs visited the a property and were unable to gain access, they would have to had been refused access.

IVA Supervisors' Petition.

If you are currently within an IVA, your supervisor may petition the for your bankruptcy on the grounds that:

  • You supplied false of misleading information on which the arrangement is based.
  • You have failed to maintain the terms to the arrangement.

In this case, the IVA Supervisor can become the Trustee in the bankruptcy.

Issue of the Bankruptcy Petition

A Bankruptcy Petition must be served in person. A Bankruptcy order may still be prevented but you must give at least 7 days notice of your intention to oppose it. You may not use any reason for which a ruling has already been made against, unless there has been a change in circumstances.

What To Do Next

If you are consider petitioning for you own bankruptcy, then you must also consider whether a IVA is a better alternative for your circumstances. This is especially the case if you own your home or have other high value assets to want to keep.

Before commiting yourself to bankruptcy please call us for Free Expert Advice
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