Bankruptcy Hearing - What Happens?

If you are worried about being declared bankrupt by your creditors (this is very unusual) or are considering bankruptcy as a solution to your debt problems then you may be worried about the bankruptcy hearing and what will happen at it.  Although bankruptcy is a very serious step to take, the hearing itself is (in the UK) a very straightforward affair.

Bankruptcy Hearing - What Happens

In the case of debtor petitions (people declaring themselves bankrupt) the procedure is extremely simple.  You make an appointment at your local court and at this time you will be sent a bankruptcy form to fill in.  Please take advice when filling in this form because this may have a big affect on how much money you have to pay into your bankruptcy.  The hearing itself will just consist of the judge reviewing the bankruptcy form and perhaps asking a couple of questions to confirm that you are unable to pay your debts.  As long as you have the required court fee you will be declared bankrupt immediately and all of your unsecured debts will be removed from you.  That's it!

Although the hearing itself is simple, please remember that the consequences of being declared bankrupt are very serious and will last for a long time.  Always make sure that you have taken qualified advice and considered all other options before declaring bankruptcy.

If a creditor is attempting to declare you bankrupt then you really need to seek legal advice if you want to avoid this.  The bankruptcy hearing will in this case be a more adversarial affair, with the creditor that is trying to make you bankrupt presenting a case for it, and you and your legal representatives arguing your case.