Declaring Bankruptcy

Expert Bankruptcy advice every step of the way

If you do decide to file for Bankruptcy, Baines & Ernst will provide an initial assessment to ensure Bankruptcy is the most appropriate solution for you. If it is, we will then transfer your case to our sister company, Baker Evans Ltd, who will provide a Bankruptcy support service.

Filing for Bankruptcy is a big step – and one that needs careful consideration. Bankruptcy can have severe repercussions on your life and credit rating. Therefore it’s essential you explore all debt solutions such as an IVA or a Debt Management Plan.

For sound advice on Bankruptcy, speak to Baines & Ernst today on 0800 096 1331.

How to declare Bankrupt

To begin the process, you will need to complete a Bankruptcy petition. Once this has been filed, a date will be set for the initial court hearing. This hearing will determine whether a Bankruptcy Order should be made or not. If it is granted, you will be declared Bankrupt.

Creditors can also file a petition against you if you owe more than £750 and cannot repay your debts.

Bankruptcy fees

If you are a couple and are both applying for Bankruptcy, you will each have to pay separate fees.

Baines & Ernst’s sister company Baker Evans can provide an optional Bankruptcy Support Service and charge a service fee of £450 for providing the Bankruptcy support service. You will have the option to pay this fee in installments

Bankruptcy duration?

You will normally be discharged from the Bankruptcy order after 12 months. However the Bankruptcy order will be registered with the Credit Reference Agency and will remain on your file for 6 years after completion. This will affect your credit rating and ability to secure credit in the future.

Even after this 6 year period, you may still have to declare that you were bankrupt – especially if you’re applying for a mortgage. Ultimately, you will have to re-build your credit rating over a number of years.

Depending on your earnings, your Trustee may require you to make contributions to your creditors out of your income. The amount that is paid to creditors is determined by the amount that you can reasonably afford after your normal living costs have been deducted from your income. This is called an Income Payments Order (IPO), and if applicable, it will remain in force for three years from the date of Bankruptcy. This means that even though you may have been discharged from your Bankruptcy after one year, you will still have to continue paying your IPO for a further two years.

For professional debt management support, speak to a Baines & Ernst now on 0800 096 1331.