Personal Bankruptcy Goes Online

From 6 April 2016, you can now apply for bankruptcy on the GOV.UK website without having to go to court.

Bankruptcy can offer you a fresh start if there is no other way out of debt problems. However, going bankrupt may have a serious impact on your day-to-day life, so it isn't for everyone. Make sure you've done your research, taken advice and are sure it's the best option for you.  There is no minimum debt limit.

As well as applying for bankruptcy yourself, someone else you owe money to can also apply to make you bankrupt, even if you don't want them to do so. For a creditor to make you bankrupt, you must owe at least £5,000 and their petition must be heard in court.

To apply to go bankrupt you now need to fill in an online application. You or someone helping you can fill in the form on the GOV.UK website. You can save and logout so you don’t have to fill it in all in one go.

You will need to pay a total fee of £655 to apply to go bankrupt. You won't get this back unless you decide to cancel your application before submitting it.

You can pay the bankruptcy fee online when you fill in the form with a credit or debit card. If you pay online you can pay in instalments. The minimum online payment amount is £5 and can be paid in as many instalments as you need.  You can pay by cash at any Royal Bank of Scotland branch. You can’t pay by instalments if you pay in cash.

There may be a delay of several days between your bankruptcy order being made and the official receiver taking control of your money and property. However, your bank or building society accounts may be frozen immediately, meaning you won't be able to access any money. Therefore, you should take enough money out of your account to cover your costs for the next few weeks, if possible.

When submitting the application, the person helping you has filled in the form, you’ll be asked to confirm some information, namely:

you are the person named on the form

the information you have provided is accurate

you agree to a credit check.

If someone has filled in the form for you, it’s still important for you to read and agree to these statements before submitting your application.

If you make false statements on the forms, or don't include details of all your property, this is a criminal offence and you could be fined or sent to prison. It is also a criminal offence to hide property or documentary evidence.

After you submit your application, an adjudicator will decide either to make a bankruptcy order or reject your application. The adjudicator has 28 days to make their decision.  If they need more information about your case, they will contact you. If they do need to contact you, they will have 14 more days to make a decision.

If they decide to reject your application, you can ask them to review their decision. If they confirm their decision to reject your application after the review, you can appeal to the court against the decision.

To request an appeal, you need to submit form N161 to your local court that deals with bankruptcy. You can find form N161 on the GOV.UK website.

When the bankruptcy order is made, you’re officially declared bankrupt and the Official Receiver is appointed as Trustee to deal with your estate in the normal manner.

Provided you co-operate with the official receiver and trustee, you'll be discharged from bankruptcy after a year.