Moneymagpie - Logo

Search Moneymagpie     

Dealing with a bankruptcy petition

Two women looking out to sea
You've reached the end of the line with debts - so what now?

What happens when you get made bankrupt?

  • A creditor to whom you owe more than £750 (or two or more who are owed between them more than £750) need to show that you do not appear able to pay the debt, or have no reasonable prospect of doing so to petition for your bankruptcy.
 
  • A common way of a creditor showing this is to send you what is called a “statutory demand”. This is a letter that makes a formal demand for the sum you owe.
 
  • Failure to pay that sum as requested in the statutory demand within three weeks of receiving the demand means that the court will view that you appear unable to pay the debt.
 
What if I don’t agree with this?

If you honestly believe that the petitioning creditor is completely wrong and that you do not owe them £750 or more:
 
  • You can resist the petition.
     
  • You should take legal advice if you can afford it.
     
  • If you cannot afford legal advice, try a Citizen’s Advice Bureau.
     
  • Above all, do not be afraid to go to court personally. The courts will generally be on your side and will take the time to explain the process to you and what you should do if you want to resist the petition.
 
If you believe you do owe £750 or more:
 


Jasmine and the Moneymagpie team
Moneymagpie Moneypedia
07.01.2008

Want to know how we make money? click here

delicious    digg    furl    
Privacy Statement | Terms & Conditions | Site Map | About Us | Press | Charity © Copyright Moneymagpie Ltd

Suggest new board




 Submit   Cancel
 

Login



Forgot your password? Click here

 
  
Cancel

Report this post

Other notes
 Send   Cancel