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.