What are the Guidelines for Bankruptcy

Bankruptcy 101

Are you already having problems managing your finances? Are you in the brink of going bankrupt and does not have an idea on what to do? If your answers to the questions are yes, then perhaps someone should shed some light and give you the bankruptcy guidelines. Below are the major steps to take when you are going to file for bankruptcy.

What are the Guidelines for Bankruptcy
  1. Ensure to get the Debtor’s Bankruptcy Petition Form and the Statement of Affairs (Debtor’s Petition). You can get these forms from the court (downloading it from the site, picking them up or asking them to send it to you). Make sure that prior to facing the county or high court, these forms have already been answered and three copies have been furnished (One for you, for the court and the Official Receiver).
  2. Be aware that there are bankruptcy fees involved which can be paid either in cash, bank, building society, postal order, or charity checks. It is important to note that the fees cannot be paid through credit card and/or personal checks.
  3. To file for the bankruptcy, go to your nearest court. It is best to go to the court nearest to the place where you have lived for the past six months. However, if you are not comfortable in the court near you, you can always opt for the one that you are most comfortable with.
  4. When you are in the court, you actually do not have to face everyone. Most often than not, you are only called in court if there are ambiguity in the forms or to confirm the details that you have written. Then they will give you a bankruptcy batch number which has an agreed time and date for the Official Receiver’s interview.
  5. The interview usually takes place in via phone and can take up to 45 minutes. The call will only tackle about your income and expenditures to ensure that you are able to pay anything that comes towards the administration of the bankruptcy.
  6. Once it has been affirmed that you can pay, the two of you would come into an income payment agreement which is a legally binding agreement that states the specified amount to be paid in certain periods. There is no definite amount; this usually depends on how much the Official Receiver thinks you can afford to pay.
  7. When everything is set, you should not be paying any of the lenders and/or creditors that you have listed in your petition for bankruptcy. When they are seeking for payment, give them your bankruptcy order number instead and advice to deal with your Official Receiver.

Filing for bankruptcy is really not that daunting once you follow the correct bankruptcy guidelines.