So you're are sure you wan to go bankrupt and you have explored the other options that include debt management and an IVA.

You should read this. Bankruptcy - what you need to know

Bankruptcy is a right we all have in law when we cannot afford to pay our debts. It is a serious step for people who have no other realistic debt solution. It means that after your bankruptcy your debts will be discharged However you may also lose any assets you have.

Bankruptcy law changed in 2004 to make the process faster and simpler. If you find it necessary to declare yourself bankrupt. You should contact your local county court. They will tell you which court has bankruptcy jurisdiction for your area. You can either visit them to pick up a set of bankruptcy forms or you can complete them online http://www.insolvency.gov.uk/doitonline/doitonlinemenu.htm

Complete your forms

There are lots of guidance leaflets available from the court and from www.insolvency.gov.uk They are long and involved but are not difficult to understand. They have won awards for Plain English.

You must be thorough and honest as you will have to swear an affidavit that they are true.

The Fees

In order to declare yourself bankrupt you must usually pay two fees. A deposit of £360, this must always be paid. A court fee of £150, this can be waived if you are in receipt of certain benefits. The court staff will advise you on whether you qualify. There may also be a fee of £12 for swearing your affidavit. This depends on the court you are using. If you and your spouse are declaring bankruptcy you must both pay the fees. (This could add up to £1044).

The fees must be paid in cash (or a postal order) Phone the court for a date to declare yourself bankrupt. Some courts are busier than others. They are usually open 10-4 Monday to Friday.

Go to Court

The court staff will process your forms, taking them away to be stamped and they will arrange for you to speak to a District judge. This will be usually be in chambers, meaning an office -not in court. There will usually just be you and the judge. Address the judge as Sir or Ma'am).

The judge will usually ask you whether you have taken advice and will check you understand what is about to happen. You will usually be informed of alternatives such as Administration Orders, Debt Relief Orders and Individual Voluntary Arrangements.

It is usually only a 10 minute meeting. The judge will make the Bankruptcy order and you will then be bankrupt. All your debts are now bankruptcy debts.

The Official Receiver(OR)

The OR is a civil servant who works at the court. The OR has responsibility for

• Administering your bankruptcy from the date of the order.
• Dealing with your creditors (you should refer them to the OR).
• Dealing with any assets you have e.g. your home, your car your salary.
• Investigating any suspicious or criminal activity

The interview

Sometimes you will be interviewed by an examiner working for the OR on the same day the bankruptcy order was made. It is more likely the interview will be within a few days.

Sometimes in very simple cases the interview is held over the phone The examiner will go through your forms and ask questions about how you came to be in your current circumstances.

The OR will decide whether it is appropriate to appoint an Insolvency Practitioner as your Trustee – if you have extremely large debts or many assets for example. In most cases the OR will act as your Trustee – this is called Summary Administration.