Bankruptcy Petition

The court, upon the filing of your petition, can make a bankruptcy order against an individual who fails to pay his/her debts. A bankruptcy order makes sure that the assets of the bankrupt are shared out fairly among the creditors and imposes certain restrictions on the bankrupt, such as:-

If an undischarged bankrupt trades under a new name, he or she must disclose the old name (under which the bankruptcy order was made) to anyone with whom he or she does business.

An undischarged bankrupt is not allowed to act as a director of a company or be concerned with its management, without leave (permission) of the court.

An undischarged bankrupt can only get credit up to £500 without informing those with whom he or she is dealing about the bankruptcy.

Bankruptcy does not necessarily mean that the debts of the bankrupt will be paid.

Before you can present a Bankruptcy Petition against an individual or a partner in a business, you must have either:-

served a Statutory Demand and the debtor failed to comply with it, or

have an "unsatisfied" execution of a Judgment debt, whereby either a County Court Bailiff or High Court Enforcement Officer has been unable to seize enough assets to discharge the debt.

The out of pocket expenses and disbursements required to present a bankruptcy petition are considerable and we would not recommend taking this course of action lightly.

Please refer to the table below for guidance

* Please note that our fee is calculated on the basis that the petition is heard in the Torquay & Newton Abbot County Court and concluded at the first hearing. Should the matter be adjourned or other legal issues arise, then our hourly rate of £60 shall apply.

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