The Bankruptcy Helpline

Frequently Asked Questions

1) What if for some reason the Adjudicator refuses my bankruptcy

If the bankruptcy was to be refused then to be honest I should know that before it was submitted, and would not submit the same. However if this happened then I would reimburse you the Application fee of £130 which is part of the £680 fee you have paid, the balance of £550 would be repaid to you, so financially you will not lose out.

2) How long will it take to make me bankrupt?

This can all be completed within a week however the Adjudication can take up to 28 days but often it is much quicker.

3) Do I lose my home, car and furniture and possessions if I become bankrupt?

Unless purchased under a current hire purchase agreement, you can keep the following items unless their individual value is more than the cost of a reasonable replacement, when you go bankrupt:

Tools, books, vehicles and other items of equipment which you need to use personally in your employment business or vocation.

Clothing, bedding, furniture, household equipment and other basic items you and your family need in the home.

You also need not necessarily give up your home however this requires much further thought and discussion and will depend on whether there is any equity in the home. Please see this link: The Family home in bankruptcy

4) Do I have to attend an interview with the official Receiver?

Most people will be interviewed by the Official Receiver about two weeks after the bankruptcy order has been made. Normally this is over the telephone at your home or place of work, but sometimes it can be at the Official Receivers office if you have been in business or have especially large debts or unusual circumstances.

As we have completed your statement of affairs and having attended many interviews over the years we are able to guide you as to what questions you may be asked, allowing you to be prepared in advance allowing the interview to run as smoothly as possible.

5) Can I still have a bank account if I become bankrupt?

If your bank account is overdrawn it will be closed in any event, it makes good sense to open up a new account before going bankrupt, in many circumstances if you are into overdraft and struggling it may be prudent to open a new account even if you do not intend to go bankrupt.

Yes you can have a basic account of a paying in facility, direct debit facility for paying your bills and a card to take cash from a machine.

6) Where can I find out more about bankruptcy?

The insolvency service has published a Guide to Bankruptcy available at most Citizens Advice Bureaus or you can get advice from The Money Advice Service