Baker Evans support services

We will help ease the pressure of going Bankrupt by offering guidance throughout the application process – ensuring you have fulfilled what is required of you at the application stage. We will also help you complete the Statement of Affairs document.

We will happily contact the creditors you owe money to on your behalf and inform them about your forthcoming Bankruptcy Petition. This should help to minimise contact from your creditors during the filing stage.

Bankruptcy normally lasts for a period of 12 months; during this time you will still be entitled to contact your dedicated Bankruptcy Support Consultant if you have any questions or require any further advice.

The court will create a Bankruptcy Order only after a Bankruptcy Petition has been presented. It is usually presented by:

• Yourself – known as a Debtor’s Petition
• Creditors – companies who are owed at least £750. This is known as a Creditor’s Petition

A Bankruptcy Order can still be made even if you refuse to acknowledge it or agree to the Order. Therefore it is important that you co-operate fully once Bankruptcy proceedings have begun.

If you dispute the creditor’s claims, you could try to reach a settlement agreement with them before the Bankruptcy Order is made.

You will have to pay a Bankruptcy fee when you take your Petition and Statement of Affairs to the Court. This fee is made up of two parts.

1) The Court fees: £175

In some circumstances the Court may waive this fee; for example, if you are on Income Support. If you are not sure whether you qualify for a reduction in the fee, or if you are exempt from paying the fee, Court staff will be able to tell you more.

2) The Official Receivers fees: £525

This must be paid in all cases and helps meet the Official Receiver’s costs of administering your Bankruptcy.

If you are a married couple and you are both applying for Bankruptcy, you will each have to pay separate fees unless both parties apply for a joint Bankruptcy Petition under the Insolvency Partnerships Order 1994 (Form 16).

The above fees should be paid in cash, Postal Orders, or by a solicitor, building society or bank cheque.

Cheques should be made payable to HM Paymaster General. Personal cheques will not be accepted.

Baker Evans charges a fee for providing the Bankruptcy Support Service. Please contact us directly for more information.

Bankruptcy Petitions are usually presented either at the High Court in London or a County Court near to where you live or trade.

A Petition can be presented against you even if you are not present in England or Wales at the time, providing you normally live in, or have a recent residential or business connection within England or Wales.

The address and telephone number of your local County Court is listed under ‘Courts’ in the phonebook, you should look for ‘Civil Courts or County Courts’ not ‘Magistrates Courts’. The Courts Service website www.courtservice.gov.uk has an index of County Courts that will show areas with jurisdiction. However, you will need to contact the Court to find out if it has authority to hear Bankruptcy cases.

The Court will either hear your petition straight away or will arrange a time for the Court to consider it.

If English is not your first language and you need an interpreter, the Court will not be able to help you find one. You will have to do this yourself and pay the interpreter’s fees.

At the hearing the Court can do one of four things:

1. Stay (delay) the proceedings – often because the Court needs further information before it can decide whether to make a Bankruptcy Order.
2. Dismiss the petition – perhaps because an Administration Order would be more appropriate.
3. Appoint an Insolvency Practitioner – if the Court thinks that an Individual Voluntary Arrangement would be more appropriate. This will only be possible if your assets are more than £4000; your unsecured debts are less than £40,000 and you have not been bankrupt or made an Individual Voluntary Arrangement in the previous five years. If you do not wish to enter into such an arrangement, you should inform the Court.
4. Make a Bankruptcy Order. You will be bankrupt the moment the Order is made by the Court.

The Official Receiver will become your Trustee in Bankruptcy and will take control of your assets. You will automatically be freed from Bankruptcy usually after a maximum of 12 months from the date of the Bankruptcy Order.

The Official Receiver is a civil servant and an officer of the Court. They are responsible for administering bankruptcies and will act as a Trustee of your estate unless a private sector Insolvency Practitioner is appointed.

One of the Official Receiver’s main duties is to investigate your financial affairs for the time before and during your Bankruptcy.

An Insolvency Practitioner can be appointed as a Trustee instead of the Official Receiver; they must be licensed and are usually accountants or solicitors. The Insolvency Practitioner is then responsible for the disposing of your assets and making payments to your creditors.

Your duties

• When a Bankruptcy Order has been made, you must provide the Official Receiver with information relating to your financial affairs within 21 days, including:
  • A list of your assets (property, pensions, insurance policies, etc…)
  • A list of creditors (the companies you owe money to)
  • Amounts of each debt owed to each creditor
• Ensure bank statements and insurance policies relating to your property and financial affairs and assets are passed to your Official Receiver
• Declare any assets or income increases obtained during the Bankruptcy
• Stop making direct payments to creditors included in your Bankruptcy Order
• Refrain from using any credit card (or similar) accounts, overdrafts or chequebooks and make your bank aware of your Bankruptcy
• Attend court if you are asked to do so to explain why you are in debt

The duties mentioned above are taken very seriously; failure to co-operate could result in police involvement.

It’s also worth noting that you cannot obtain credit of £500 or more without first disclosing the fact that you are bankrupt.

You will have a cooling-off period as part of your application. If you cancel within 7 working days of signing your Terms of Business, any payments made to Baker Evans or their representatives will be refunded and your application closed. If for any reason your application does not succeed, alternative options may be offered to you with no obligation. Please note that your property could be at risk if you file for Bankruptcy and separate fees are payable to the courts.