What Are The Legal Requirements For Filing For Bankruptcy?
Filing for bankruptcy is a legal process for individuals who cannot pay their debts. The requirements for filing are that the indebted person must:
- be a resident and have a place of business or own property in England and Wales;
- owe at least £5,000 in unsecured debt;
- be unable to pay their debts;
- not have been declared bankrupt within the last six years;
- not be subject to a Debt Relief Order or have had one in the last six years;
- pay the current fees associated with filing, including the court and Official Receiver's fees, which can change;
- provide a Statement of Affairs, which is a detailed document listing the indebted person’s assets, liabilities, income, and expenses; and
- apply for bankruptcy through an online application process or by submitting a paper application to the local county court.
The court will appoint an Official Receiver to manage the bankrupt’s assets and financial affairs and repay creditors to the extent possible.
Bankruptcy usually lasts for a year, after which it will be discharged. Remaining debts may be written off.
More information is available in the By Lawyers Enforcement guide and the upcoming Individual Insolvency and Bankruptcy guide.
