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Bankruptcy petitions

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In order for a creditor to present a bankruptcy petition, the debt owing must be £5,000 or more. In this section, we set out the steps required to issue a bankruptcy petition, the consequences of the bankruptcy petition, how to respond to a bankruptcy petition and the consequences of being made bankrupt.

Issuing a bankruptcy petition

If you have tried to obtain payment of your debt from an individual, without success, you can issue a bankruptcy petition against the debtor. If the debt owed to you is by a company please see our winding up petition section.

To issue a bankruptcy petition against a debtor the following must be completed:

  • The bankruptcy petition must include prescribed information as provided by rules 10.7, 10.8 and 10.9 of the Insolvency Rules 2016 regarding a creditor’s petition.
  • A search must be carried out to see whether any other petitions have been issued against the debtor and a certificate to this effect must be endorsed on the petition.
  • The petition must be verified by a Statement of Truth.
  • The petition must be sent to the correct court with the correct number of copies and it must be accompanied by the Official Receiver’s deposit of £990 and the court fee of £280.
  • The bankruptcy petition will be stamped with the court seal and given a hearing date.
  • The court will notify the Land Charges Department that the petition has been issued and this will be added to the public register.
  • The court will send you the issued documents for service on the debtor.

A bankruptcy petition must be served personally on the debtor at least 14 days before the date of the hearing.

Consequences of a bankruptcy petition being presented

The presentation of a bankruptcy petition has the following consequences:

  • The Chief Land Registrar is notified that a petition has been issued meaning your name will be added to the bankruptcy register as a pending action. Other creditors may become aware and your bank account could be frozen.
  • Any transaction that you enter into will be void unless approved by the trustee in bankruptcy or the court. This could have severe implications on your business or sale of a property or asset.
  • The petition cannot be withdrawn without court permission at the hearing making it difficult to pay the petitioner, especially if you have other creditors who become aware of the petition.

What to do if a bankruptcy petition has been served on you.

If a bankruptcy petition has been served on you, there are a number of factors to be considered when deciding how best to respond to it. For instance:

  • You may wish to challenge the petition should you not accept that you owe money;
  • You may wish to challenge the petition in the event the petitioner hasn’t complied with the correct procedure;
  • You can come to an agreement with the petitioner to repay the debt;
  • You may enter an agreement with all your creditors in respect of all of your debts. This is known as an individual voluntary arrangement (IVA); or
  • You can decide to accept bankruptcy as your only or best option.

Severity of a bankruptcy order

If the court makes a bankruptcy order, this will be drawn up and a copy sent to the local Official Receiver’s office. The Official Receiver’s office will notify the Land Charges Department that the order has been made and this will be added to the public register of writs and orders. The order will be advertised in the London Gazette and local newspapers as the Official Receiver’s office feels appropriate.

The consequences of being made bankrupt can be life-changing and severe. Below we set out some of these consequences:

  • The debtor and their family may lose their home;
  • The debtor may lose their business;
  • The debtor may have to resign as a company director;
  • The debtor’s credit rating may be significantly affected; and
  • You may be subject to some stringent bankruptcy restrictions

If you are a creditor and wish to serve a bankruptcy petition on a individual, please see our debt collection price guide, which sets out our fixed fees for preparing and serving a bankruptcy petition

If you are an individual who wishes to challenge a bankruptcy petition, we shall provide you with an estimate of our fees based on the type of work required.

For more information, please get in touch today by emailing litigation@grantsaw.co.uk or contact our insolvency experts directly on 020 8858 6971.

Meet the Bankruptcy petitions team
Ray Crudgington
Managing Partner
greenwich
02083054224
ray.crudgington@grantsaw.co.uk
Maria Lati
Partner
Head of Residential Property
blackheath
02083054229
maria.lati@grantsaw.co.uk
Mike Clary
Partner
Head of Family
greenwich
02083054237
mike.clary@grantsaw.co.uk
Kalpa Prajapati
Partner
Head of Private Client
blackheath
02083053536
kalpa.prajapati@grantsaw.co.uk
Mario Savvides
Partner
Head of Commercial Property
greenwich
02083053531
mario.savvides@grantsaw.co.uk
Sarah-Kate Jackson
Partner
Head of Litigation
greenwich
02083054236
sarah-kate.jackson@grantsaw.co.uk
Adina-Leigh Collins
Litigation
Solicitor
greenwich
02083053556
adina-leigh.collins@grantsaw.co.uk
Aimal Gram
Commercial Property
Solicitor
greenwich
02083053524
aimal.gram@grantsaw.co.uk
Aisha Mohammed
Residential Property
Solicitor
greenwich
02083054228
aisha.mohammed@grantsaw.co.uk
Aishat Balogun
Aishat Balogun
Family
Solicitor
greenwich
02083054214
aishat.balogun@grantsaw.co.uk
An Le Tran
Commercial Property
Professional Support Solicitor
greenwich
02083054226
anle.tran@grantsaw.co.uk
Angus Young
Litigation
Solicitor
greenwich
02083054225
angus.young@grantsaw.co.uk
Atifha Aftab
Atifha Aftab
Family
Solicitor
greenwich
02083054238
atifha.aftab@grantsaw.co.uk
Bimal Kotecha
Litigation
Solicitor
greenwich
02083053523
bimal.kotecha@grantsaw.co.uk
Charlotte Warren
Charlotte Warren
Private Client
Solicitor
blackheath
02083054231
charlotte.warren@grantsaw.co.uk
Claire Mac Mahon
Litigation
Solicitor
greenwich
02083053537
claire.macmahon@grantsaw.co.uk
Deborah Taite
Residential Property
Solicitor
blackheath
02083053542
deborah.taite@grantsaw.co.uk
Emily Pearce
Residential Property
Solicitor
greenwich
02083053526
emily.pearce@grantsaw.co.uk
Georgia Beales
Litigation
Paralegal
greenwich
02083054206
georgia.beales@grantsaw.co.uk
James McKimm
James McKimm
Corporate and Commercial
Solicitor
greenwich
02083054217
james.mckimm@grantsaw.co.uk
Jeremy Brooks
Jeremy Brooks
Private Client
Solicitor
blackheath
02083053534
jeremy.brooks@grantsaw.co.uk
Joanna Godden
Notary Public
Notary
greenwich
02083083535
joanna.godden@grantsaw.co.uk
Kim Whitaker
Kim Whitaker
Corporate and Commercial
Head of Corporate and Commercial
greenwich
02083053539
kim.whitaker@grantsaw.co.uk
Lauren Smith
Employment and Family
Paralegal
greenwich
02083053543
lauren.smith@grantsaw.co.uk
Maleeha Iqbal
Residential Property
Licensed Conveyancer
greenwich
02083054232
maleeha.iqbal@grantsaw.co.uk
Mandeep Clair
Family
Solicitor
greenwich
02083054235
mandeep.clair@grantsaw.co.uk
Michael Pope
Employment
Consultant Solicitor
greenwich
02083053540
michael.pope@grantsaw.co.uk
Michelle Pinnington
Michelle Pinnington
Residential Property
Solicitor
greenwich
02083054216
michelle.pinnington@grantsaw.co.uk
Noella Gooden
Employment
Solicitor (Australian qualified)
greenwich
02083053543
noella.gooden@grantsaw.co.uk
Raj Waghela
Raj Waghela
Residential Property
Solicitor
greenwich
02083053529
raj.waghela@grantsaw.co.uk
Randeep Thethy
Randeep Thethy
Residential Property
Solicitor
greenwich
02083054209
randeep.thethy@grantsaw.co.uk
Sarah Conner
Sarah Conner
Private Client
Solicitor
blackheath
02083054234
sarah.conner@grantsaw.co.uk
Simran Lalli
Simran Lalli
Employment
Solicitor
greenwich
02083054208
simran.lalli@grantsaw.co.uk
Susan Collins
Commercial Property
Solicitor
greenwich
02083054200
susan.collins@grantsaw.co.uk
Tatiana Zenina
Tatiana Zenina
Private Client
Solicitor
blackheath
02083054239
tatiana.zenina@grantsaw.co.uk
Trisha Djemal
Trisha Djemal
Residential Property
Consultant Solicitor
blackheath
02083053546
trisha.djemal@grantsaw.co.uk
Tyrone Grant
Residential Property
Head of Leasehold Enfranchisement
blackheath
02083053522
tyrone.grant@grantsaw.co.uk
Denise
Accounts Staff
greenwich
02088586971
enquiries@grantsaw.co.uk
Jamie
Support Staff
Head of IT
greenwich
02088586971
enquiries@grantsaw.co.uk
Jayne Lye
Support Staff
Office Manager
greenwich
02083054204
jayne.lye@grantsaw.co.uk
Kasia
Accounts Staff
greenwich
02088586971
enquiries@grantsaw.co.uk
Michael Tobin
Michael Tobin
Support Staff
Marketing and Business Development Manager
greenwich
02083053550
michael.tobin@grantsaw.co.uk
Laura Danquah
Compliance Manager
greenwich
02083054222
laura.danquah@grantsaw.co.uk
Sue Holness
Support Staff
Customer Services
greenwich
02083054221
sue.holness@grantsaw.co.uk