What is bankruptcy?

Bankruptcy is a form of insolvency. It is a legal process that will share out your assets among your creditors. At the end of the process your outstanding debt is written off and you can make a fresh start.

Expert help when you need it most

Choosing bankruptcy is often seen as a last resort for those with significant debt problems but, whilst there are consequences - which should be considered carefully - if your situation is unlikely to improve, you have limited assets and can't afford to repay your debts in a reasonable time, bankruptcy offers a positive step to resolve your debt problems and an opportunity to start over.

Bankruptcy is a complex legal procedure and it's vital to make sure that it is appropriate for you. Our team of bankruptcy advisers will assess your situation in a single call and advise on the best solution for your circumstances, in confidence and without obligation.

The Bankruptcy Advisory Centre service

The Bankruptcy Advisory Centre's team of specialists will guide you throughout your bankruptcy. We'll take care of all the paperwork, court procedures and liaise with your creditors and the Official Receiver on your behalf.

You don't need to worry or feel overwhelmed by the official procedures as we're there to support you throughout the process.

Helping you every step of the way

The simple guide below explains how the Bankruptcy Advisory Centre service provides practical assistance and a straightforward approach before, during and after your bankruptcy.

Step 1: Know your options »: Our trained advisers will talk through your financial situation, your income and expenditure details and how much you have left over to pay your debts each month. They'll explain, and help you to understand your options, and the benefits and consequences of your decision to choose bankruptcy.
Step 2: Your dedicated expert »: You will be appointed your own Personal Insolvency Specialist. They will be your dedicated point of contact throughout your bankruptcy application - your own personal 'expert', so you never feel that you're going it alone. They will answer any questions you might have and advise you at each stage of the procedure.
Step 3: We deal with your creditors »: We will deal with your creditors on your behalf; we'll liaise with them to confirm your situation and work with them throughout the bankruptcy process to try to ensure that everything runs smoothly. Our Insolvency Specialist Team will try to negotiate a hold on your accounts or token payments to be made, giving you some breathing space whilst we work with you to prepare your petition.
Step 4: We prepare you for court »: We will work with you to complete the 'Bankruptcy Petition' for you to check and sign. We will also help you compile a 'Statement of Affairs', detailing all your assets and liabilities, income and expenditure, and ensure all the necessary information is ready to be presented to the court. We will arrange a hearing, which you must attend, so you can present your petition to the court. Your application will be considered and, subject to the courts approval, the Bankruptcy Order will be made.
Step 5: After the hearing »: Once your Bankruptcy Order is made, you will be interviewed by the Official Receiver assigned to your case. The Official Receiver is an officer of the court and is responsible for administering your case. They will decide, as applicable, how any assets should be dealt with and the level of any regular payments. We will ensure you are fully prepared for the interview and know what to expect at each stage of the process. Wherever possible, we will work with the Official Receiver on your behalf.
Step 6: Here to help »: Once your Order is in place, the appointed Trustee (usually the Official Receiver) has the responsibility of distributing any available funds to your creditors who cannot pursue you directly for further payments. We will make sure your creditors are informed and take care of any communication you receive from them. When the Official Receiver is satisfied that your case is complete, we'll work with you to ensure that the credit reference agencies are updated to reflect this and advise you on ways to start rebuilding your financial future, now that you are officially discharged.

The consequences of bankruptcy

The section below explains what happens once your Bankruptcy Order has been made and how it will affect you.

Fees involved »

Our fees

At the Bankruptcy Advisory Centre, we believe in being completely transparent about the costs for our service. Our charge is £375 plus VAT per application and includes all the administration, preparation of the necessary court documents and creditor communications as outlined previously. It also includes the ongoing support of your own Personal Insolvency Specialist during the period leading up to your Order and for 12 months after your application. As we understand that your situation may not enable you to pay the full amount all at once, the fee can be paid in instalments. Discuss this with your Personal Insolvency Specialist.

Court and Official Receiver fees

There are two further costs associated with your application that you will have to pay to the court when your bankruptcy application is made: The court fee is £150, although you may qualify for this to be waived in certain circumstances. Your Personal Insolvency Specialist will be able to advise you on this. The cost for the Official Receiver to administer your bankruptcy is £450.

Your bankruptcy order »

Once a Bankruptcy Order has been made, you will have twenty one days to supply all your financial details, including a list of all your assets, to the Official Receiver, who is in charge of investigating all the information provided in your Statement of Affairs, and details of your financial commitments.

Your assets »

Depending on their value, any assets, including your home and your car, may have to be sold to pay towards your bankruptcy. Certain basic household goods and any equipment necessary for your work are usually excluded.

If your income or the value of your assets increase during the course of your bankruptcy, you have a duty to declare this to the Official Receiver and you may be required to put some of it towards your bankruptcy.

Getting credit »

You cannot apply for more than £500 credit without the authorisation of the Official Receiver.

Your bank account »

It is unlikely you will be able to continue to use any existing bank, building society or credit card accounts as they will be frozen by the Official Receiver. You may however open a new 'basic' bank account. Many high street lenders provide a basic bank account and our sister company, thinkbanking, offers a managed account which can be a partner to your Bankruptcy Advisory Centre Service.

If an amount of your debt or overdraft is with the bank or building society that your salary is paid into, they may use the money in your account to pay towards the debt owing to them, before releasing any funds to you or the Trustee. It's advisable to move your salaries account to a different bank or building society before commencing your bankruptcy.

Restrictions and publicity »

You cannot hold certain public offices or practice as an accountant, solicitor or act as a director of a company. Certain occupations such as the Police, Armed Forces or positions in Government offices may have restrictions if you have been declared bankrupt.

Information regarding your bankruptcy will be published in the London Gazette and could be published elsewhere. It will also be available online on the Insolvency Service Public Register. Details of your bankruptcy will remain on your credit file for six years, affecting your ability to get credit in the future.

What if I change my mind? »

You are under no obligation whatsoever to enter a debt solution. If you do choose to enter a solution, and then change your mind about it, you have the right to cancel the agreement at any time within the first 14 days, unless you ask us to start work immediately.

Our initial advice on your best financial solution is free. Fees payable where continuing services provided. Bankruptcy is subject to eligibility and acceptance, alternative solutions may be offered. Your ability to obtain credit will be affected in the short term to medium term and could be affected in the long term. Calls may be recorded.

Things to consider before choosing bankruptcy

It is important to understand the consequences of bankruptcy and the potential impact it could have on your future before committing to your application. To read more click below: Consequences of bankruptcy If you have any questions about how you might be affected, don't hesitate to contact us.

An award winning company

As part of the Think Money Group:

We're proud to be awarded the Sunday Times "Top 100 Best Companies To Work For 2010".

We've been accredited with the Financial Services Skills Council's "Training Excellence for Firms" award.

We're delighted to have achieved 'outstanding' status in the "Best Companies Accreditation 2010".