Protocol for Filing of Bankruptcy at the Insolvency Service UK

The Procedures Laid Down by the Insolvency Service UK for Bankruptcy Petitions

 

How to File Petitions at the Insolvency Service UK

The Insolvency Service UK has implemented a system for UK citizens who wish to file for self bankruptcy or petition someone else, a debtor who owes them money, to have a bankruptcy order.

The first thing petitioners have to do is to visit the local court of the place where they’ve resided for the last six months and acquire Form 6.27. This is the bankruptcy petition form that will get the petition for bankruptcy started. They also need to fill out form 6.28 or the statement of affairs form. This is actually a declaration of insolvency that will also contain details of assets, liabilities and creditors’ information.

Like all other processes involving the services of government offices, there are fees to be paid for those who are filing for bankruptcy. Although forms 6.27 and 6.28 may be acquired for free and are also available through the internet, petitioners need to submit these forms and formally file them to the courts.

Fees Imposed by the Insolvency Service UK

An administration fee or deposit worth £360 is required upon filing the petition for bankruptcy. This could be followed by a court fee, which is worth £150. The Insolvency Service UK does not make this compulsory and the addition of this fee depends on the financial capacity of the person being petitioned for. It is possible that it will no longer be charged if the debtor is already too bogged down by the additional burden of debt repayments and asset liquidation.

There is a £7 additional fee too if the petitioner who wishes to file for self bankruptcy swears his statement of affairs or declaration of insolvency at the High Court or before a solicitor.

The insolvency practitioner and trustees assigned to the case are also entitled to receive their own fees. However, their pay is taken from the estate of the bankrupt individual. These amounts are therefore dependent on the money derived from the bankrupt’s assets and are already agreed upon along with the creditors at the very beginning. The creditors may have their input in this matter since the insolvency practitioner and trustees will practically be taking portions of the money which, by rights, should all be used for debt repayment.

Speaking of debt repayment, all other payments will be directed towards repayment of debts. Additionally, the Insolvency Service UK is very strict at demanding honesty from bankrupts. Those who are found to have hidden assets in an attempt to exclude them from the bankruptcy process will face serious legal consequences.

A Proposed Adjustment for Bankruptcy Applications to the Insolvency Service UK

Last November 2011 a proposal was forwarded to the Insolvency Service UK regarding the involvement of the courts in the filing for bankruptcy. It suggests that for cases where the debtor files for bankruptcy himself, or when the parties involved in a bankruptcy order aren’t in conflict, the courts should no longer have to get involved. The proposal goes that the courts should only interfere when there are disputes and conflicts to settle among debtors and creditors.

Be guided in dealing with the Insolvency Service UK and filing for bankruptcy with Bridgestones UK.