Will I need to attend a bankruptcy court hearing?
In the past, if you declared bankruptcy, you’d usually attend a court hearing. This is no longer the case and you won’t have to attend a court.
Instead, you submit an online application and an adjudicator will assess it. You’ll be notified of the decision made by the adjudicator.
Who decides if a bankruptcy can go ahead?
The adjudicator will decide if your bankruptcy can go ahead. Their decision will be based on whether you’re insolvent – this means you have no way to pay your debts at the correct amount.
The adjudicator could refuse your bankruptcy. This could happen if you’re able to pay off your debts, for example by using savings, or if there’s a more appropriate solution for you such as a debt relief order (DRO). By getting debt advice from us, you’ll be able to find out whether there’s a risk that your application may be refused.
Once your bankruptcy is approved you’ll be made bankrupt the same day. Your creditors won’t be allowed to take any action to collect your debts, and debts included in your bankruptcy will be written off once you’re discharged from your bankruptcy, normally after 12 months. Because creditors can’t take action during this time, you can consider your debts written off as soon as your bankruptcy is approved.
You’ll be assigned a trustee such as an official receiver or insolvency practitioner to deal with your case and they’ll take control of your assets on the day of your bankruptcy.
After 12 months you’ll usually be discharged from your bankruptcy. This is an automatic process.