Bankruptcy is a quick way to clear debt and make a fresh start. There are two ways that you can be forced into bankruptcy:

One is through a debtors’ petition which means that you voluntarily make yourself bankrupt. You will need to find your nearest county court which deals with bankruptcy and ask them to send you a petition for Bankruptcy and Statement of Affairs documentation.

You may also want to confirm the court fee is which is about £475 per person.

The other way is through a creditors’ petition. This means that any creditors who are owed £750 or more can apply for a bankruptcy petition against you. The petition is presented to the High Court in London or your nearest county court.

If you are a home owner, your house may be sold to pay off your debt. If you have a spouse, it may be possible to stop the sale of your home for up to a year but it is important to seek legal advice on this matter.

Whilst you are going through bankruptcy you will not be able to obtain credit for any more than £250 and you must reveal your bankruptcy when applying for rental agreements or hire purchase.

You can open a bank or building society account but you must inform any financial institution of your bankruptcy. If you are putting more in your account than is necessary for everyday living expenses, your trustees have the right to claim this extra money to pay to your creditors .

Once you are discharged from your bankruptcy, any assets that you owned prior to your discharge date will be controlled by the trustees. Any assets you acquire after your discharge date will belong to you.