How do I go bankrupt?

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How do I go bankrupt?

Posted On : Nov-22-2011 | seen (569) times | Article Word Count : 819 |

Going bankrupt, also known as declaring yourself bankrupt is not something that you should decide to do unless you really understand the consequences and have considered the alternatives.

We consider what you have to do if you want to go bankrupt.
Going bankrupt, also known as declaring yourself bankrupt is not something that you should decide to do unless you really understand the consequences and have considered the alternatives.
You should make sure you get proper advice and discuss all of your options with an expert debt advisor.
However once you have made the decision that bankruptcy is the right debt solution for you, there are a number of steps you will have to go through to declare yourself bankrupt.

Step 1 - Fill in the application forms

There are two application forms that you will need for filing for bankruptcy while you declare yourself bankrupt. A bankruptcy petition form known as form 6.27 and a statement of affairs form
In the past, these forms have been available from your local county court. However, most courts will no longer post them out to you. Instead you have to download the bankruptcy application forms from the internet.
Once you have the forms you should review them to understand the information you need to include.
You should note that the bankruptcy statement of affairs form is 30 pages in length and must be completed correctly. The information you give will help the official receiver decide how to deal with your assets and whether you should make a payment each month towards your debts.

The court will not be able to help you complete your application forms. If you feel you need help you should speak an expert debt advisor.

Step 2 - Contact the court

To go bankrupt, you will have to go to your local county court in person. You therefore need to make sure you know where your local county court is.
You should give the court a ring, mention that you are planning to declare yourself bankrupt and check to make sure that you are speaking to the right court based on where you live.
During the conversation it is also useful to ask whether to go bankrupt you can just turn up at any time or whether you need to book and appointment.
Different county courts run different systems. Some require you to book and appointment and others don’t. It is useful to know where you stand.
You should also note that if you live in London, you will need to declare yourself bankrupt in the Royal Courts of Justice in the Strand. You will not need an appointment but it is recommended to arrive at the court at 9.30 when it opens.

Step 3 – Get your court fee

Unfortunately you cannot go bankrupt for free. The bankrupt fee is currently £700 per person.
You will need to pay your fee in cash on the day you go to the court. There are no facilities to make payments by card so remember to take cash with you.
If you arrive at the court without your fee, you will not be allowed to go bankrupt and may need to rebook another appointment if there is a booking system.
You can get the money together to pay for your bankruptcy in a number of ways. Of course you may be able to borrow from a friend or family member. If this is not possible, most people save their bankruptcy by stopping all future payments to their unsecured creditors.
Stopping paying your unsecured creditors to save for the cost of going bankrupt is perfectly acceptable. Your creditors will implement collection activities against you but these will be stopped as soon as you are bankrupt.

It is also useful to note that if you are on a low income or receive certain benefits, you may be eligible for a discount off the bankruptcy fee.

Step 4 – Go bankrupt on the day

When you eventually go to the court with your fee and application forms, as long as the forms have been completed correctly you will be made bankrupt on the day.
The process at the court is very quick so you must make sure you have taken the time beforehand to think about what you are doing and that you are doing the right thing.
Going bankrupt is not a decision that you should undertake lightly. Depending on your personal circumstances, being bankrupt can have a serious affect on your house and valuable assets such as your car and in certain circumstances even your job.
Before making your decision, you should therefore always take time to consider your options.
Make sure you speak to a personal debt expert who can explain the implications for you personally of going bankrupt and how these weigh up for you against the alternative solutions such as a debt management plan (DMP) or individual voluntary arrangement (IVA).

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<h1>How do I go bankrupt?</h1> Author: <a href='http://www.articleseen.com/profile_Beatmydebt.aspx'>Beatmydebt</a> We consider what you have to do if you want to go bankrupt.
Going bankrupt, also known as declaring yourself bankrupt is not something that you should decide to do unless you really understand the consequences and have considered the alternatives.  
You should make sure you get proper advice and discuss all of your options with an expert debt advisor. 
However once you have made the decision that bankruptcy is the right debt solution for you, there are a number of steps you will have to go through to declare yourself bankrupt.

Step 1 - Fill in the application forms

There are two application forms that you will need for filing for bankruptcy while you declare yourself bankrupt. A bankruptcy petition form known as form 6.27 and a statement of affairs form 
In the past, these forms have been available from your local county court. However, most courts will no longer post them out to you. Instead you have to download the bankruptcy application forms from the internet. 
Once you have the forms you should review them to understand the information you need to include.
You should note that the bankruptcy statement of affairs form is 30 pages in length and must be completed correctly. The information you give will help the official receiver decide how to deal with your assets and whether you should make a payment each month towards your debts.
 
The court will not be able to help you complete your application forms. If you feel you need help you should speak an expert debt advisor.

Step 2 - Contact the court

To go bankrupt, you will have to go to your local county court in person. You therefore need to make sure you know where your local county court is. 
You should give the court a ring, mention that you are planning to declare yourself bankrupt and check to make sure that you are speaking to the right court based on where you live.
During the conversation it is also useful to ask whether to go bankrupt you can just turn up at any time or whether you need to book and appointment. 
Different county courts run different systems. Some require you to book and appointment and others don’t. It is useful to know where you stand.
You should also note that if you live in London, you will need to declare yourself bankrupt in the Royal Courts of Justice in the Strand. You will not need an appointment but it is recommended to arrive at the court at 9.30 when it opens.

Step 3 – Get your court fee

Unfortunately you cannot go bankrupt for free. The bankrupt fee is currently £700 per person.
You will need to pay your fee in cash on the day you go to the court. There are no facilities to make payments by card so remember to take cash with you. 
If you arrive at the court without your fee, you will not be allowed to go bankrupt and may need to rebook another appointment if there is a booking system.
You can get the money together to pay for your bankruptcy in a number of ways. Of course you may be able to borrow from a friend or family member. If this is not possible, most people save their bankruptcy by stopping all future payments to their unsecured creditors. 
Stopping paying your unsecured creditors to save for the cost of going bankrupt is perfectly acceptable. Your creditors will implement collection activities against you but these will be stopped as soon as you are bankrupt.
 
It is also useful to note that if you are on a low income or receive certain benefits, you may be eligible for a discount off the bankruptcy fee.

Step 4 – Go bankrupt on the day

When you eventually go to the court with your fee and application forms, as long as the forms have been completed correctly you will be made bankrupt on the day.
The process at the court is very quick so you must make sure you have taken the time beforehand to think about what you are doing and that you are doing the right thing. 
Going bankrupt is not a decision that you should undertake lightly. Depending on your personal circumstances, being bankrupt can have a serious affect on your house and valuable assets such as your car and in certain circumstances even your job. 
Before making your decision, you should therefore always take time to consider your options. 
Make sure you speak to a personal debt expert who can explain the implications for you personally of going bankrupt and how these weigh up for you against the alternative solutions such as a debt management plan (DMP) or individual voluntary arrangement (IVA).
 
About the Author: James Falla is a debt management solutions expert and author. He has fourteen years of experience of helping people with the process of <a rel="nofollow" href="http://www.beatmydebt.com/bankruptcy/index.htm">filing for bankruptcy</a> & declaring themselves bankrupt.

In 2004 James co founded Thomas Charles a specialist debt management solutions company where he personally helped hundreds of clients declare bankruptcy. James is now the managing director of and senior debt advisor for Wilmott Turner Financial Article Source: <a href='http://www.articleseen.com/Article_How-do-I-go-bankrupt_108331.aspx'> http://www.articleseen.com/Article_How do I go bankrupt?_108331.aspx</a>

Article Source : http://www.articleseen.com/Article_How do I go bankrupt?_108331.aspx

Author Resource :
James Falla is a debt management solutions expert and author. He has fourteen years of experience of helping people with the process of filing for bankruptcy & declaring themselves bankrupt.

In 2004 James co founded Thomas Charles a specialist debt management solutions company where he personally helped hundreds of clients declare bankruptcy. James is now the managing director of and senior debt advisor for Wilmott Turner Financial

Keywords : Filing for bankruptcy,

Category : Finance : Debt Consolidation

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