Friday 25 January 2013

New Year and a new start - going bankrupt in the UK


A New Year has dawned and for many it will herald a chance for a new start. In Ireland I know that many families will be facing up to another year of debt and depreciation and for lots they will be seeking to move across to the UK to set up a new life.
For those who come to the UK and establish themselves, they may in time turn their thoughts to getting rid of their debts and declare bankruptcy. Indeed I know of many who have decided to move to England simply for the purpose of going bankrupt, which is what they are entitled to do.
If you have reached the New Year and decided that a new start is for you then you need to be absolutely certain that the steps you take will enable you to declare bankruptcy in due course. You will have to establish the UK as your centre of interest. That means that you will if possible be expected to get a job and support yourself as benefits will not be available.
As well as getting a job and a residence you should also establish a bank account. That account will need to be used on a regular basis as the Official Receiver will expect to see transactions taking place as evidence of constant living in the UK.
When you have been in the UK for up to six months you will be able if you wish to apply to the local county court that has jurisdiction for bankruptcy. Each county court has a different way of approaching bankruptcy. It is best to speak to the court and ask them their procedure. They may send you a pack for bankruptcy, which will include a petition and a statement of affairs which you will need to complete.
When this is done you will need to attend court with three copies of each document. You will also need a fee of £700 which is part court fee and part official receiver’s deposit. The court staff will process the papers and then you will be taken to see the Judge. If the Judge is satisfied that you are entitled to bankruptcy, and he will check that you have established your centre of main interest here, he will grant the bankruptcy order.
Once the order is made the affairs will be handled by the Official Receiver. His job will be to contact the creditors and realise any assets for the benefit of creditors. The Official Receiver will contact you within 24 hours to establish contact. In as little as three weeks he will conduct an interview with you and discuss the statement of affairs.
If no issues arise then the bankruptcy will automatically come to an end in just 12 months.
   

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