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FAQs on bankruptcy

Last updated: 05 April 2022

FAQs on bankruptcy

How do I make myself bankrupt?

Go to your local court, get the necessary forms and pay the fee. Return once the forms are filled out and pay the fee. But first of all take as much advice as you can. This is a very major step and will affect your life for years to come.


How do I make someone else bankrupt?

Start by instructing a good solicitor. Be aware this may cost £1,500 or so.


Am I allowed a bank account if I am bankrupt?

Yes, but you must tell the bank that you are bankrupt and they may impose conditions and limitations on your account. You may not get a cheque guarantee card. You should not obtain overdraft facilities without telling the bank that you are bankrupt.


Can a bankrupt still trade?

You can earn a living and can be self employed or have a business as long as you do not disobey the law by obtaining credit of £500 or more without disclosing that you are an un-discharged bankrupt. If you earn more than is reasonable for your domestic needs for yourself and your family, the official receiver may apply for an Income Payment Order (IPI).


How can I claim wages from someone who is insolvent?

The Redundancy Fund may pay claims for unpaid wages, holiday pay and wages in lieu of notice up to certain prescribed limits, and redundancy claims. The official receiver will provide copies of claim forms.


When will I be discharged and how do I get a certificate to prove it?

There is an automatic discharge after one year for bankruptcy orders made on or after 1st April 2004. Different rules apply to earlier bankruptcy orders. However if you don’t carry out your duties under the Insolvency Act your discharge may be suspended. Apply to the court where you were adjudged bankrupt quoting your most recent case reference. This currently costs £60.


Do bankrupts still have to pay a student loan?

Yes. Since September 2004 all outstanding student loans cannot be claimed in bankruptcy. Even people made bankrupt at an earlier date may still have to repay the loan.

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