Which bankruptcy court should you attend?

The bankruptcy court that you should attend will depend on your circumstances. If you are petitioning for bankruptcy, you will usually have to go to the county court where you have lived or carried on business for the most extended period in the past six months. For example, if in the last six months you:

• Spent 2 months living in Liverpool
• I spent 4 months carrying on business in Manchester

Then the Bankruptcy court that you should attend will be located in Manchester.

You should attend the High Court in London if you have lived or carried on in business in the London insolvency district for the more significant part of the previous six months before you petition.

If you want to check which court you should attend, the HMCS court finder may be helpful.

Before you attend court

You may consider the following practical steps before attending the bankruptcy court.

• Make an appointment during busy times.
• Ensure that your forms are completed as accurately as they can be. They will be checked.
• Have the appropriate court fees. Petitioning for bankruptcy is not free.
• Ensure you have received advice and know what the consequences of bankruptcy will be for you. Once the bankruptcy order has been made by the court it may be too late to go back.
• Ensure you know what will happen to your bank account, you still need to pay your bills. See the bank accounts for bankruptcies page for more information.

Bankruptcy Court Fees

As mentioned above, there will be court fees to pay. Unfortunately, the bankruptcy process can be costly, though you will only be required to pay a small fee. For more information, go to the filing bankruptcy page. It will explain what bankruptcy will cost in the UK in 2011.

What happens at the bankruptcy court hearing?

At the hearing, the judge will want to know that you have sought advice. If you meet the grounds for bankruptcy (unable to repay your debts), the bankruptcy order will usually be made. However, there are other outcomes to be aware of.

• Your petition may be dismissed if you do not meet the grounds
• The bankruptcy court may appoint an insolvency practitioner to investigate and report to the court on the feasibility of an IVA.

The court will not be able to make the bankruptcy order where all of the following conditions are met:

• Your debts are below the trim bankruptcies level (currently £40,000),
• the value your estate would be greater than or equal to a specified minimum amount (currently £4,000),
• in the previous 5 years you have neither been adjudged bankrupt nor made a composition with your creditors in satisfaction of your debts or a scheme of arrangement of your affairs, and
• that it would be appropriate to appoint an insolvency practitioner to prepare a report presenting the feasibility of an individual voluntary arrangement to the court.

The report will consider your willingness to enter an IVA, and if the report does not favour the IVA proceeding, the court will make the bankruptcy order.

What happens after court?

If the bankruptcy order has been made, the court will send two sealed copies to the Official Receiver. One copy will be forwarded to you, though you may be given it at court.

Further, the Chief Land Registrar will be notified of the bankruptcy order made against you for registration in the register of writs and the order affecting land. The effect is that anyone, for example, a prospective buyer conducting a land registry search, will see that a bankruptcy order has been made against you.

The official Receiver will also advertise your bankruptcy. It will be advertised in the London Gazette and local papers as the official Receiver sees fit.

For more information, visit the Official Receiver page.

What is it like at the bankruptcy court?

Many people worry about going to court to file for bankruptcy. If you meet the grounds for bankruptcy and there is nothing out of the ordinary,, you ma not see the judge. It will usually turn out to be a simple paper stamping exercise.

Please treat bankruptcy with the seriousness it deserves, though. It can have a long-lasting impact on your life.