Bankruptcy online

From 6 April 2016, a person wishing to declare themselves bankrupt in England and Wales can make the application online. This is as opposed to making an application to court. The cost of the application is £655. Another new innovation is that the debtor can now pay sums owed by instalments.

The Insolvency Service is a part of the Department for Business Innovation and Skills and it provides a service for people affected by financial difficulty.

The work of the Insolvency Service includes:

• Administering bankruptcy and debt relief orders
• Looking at the affairs of companies in liquidation and making reports on directors
• Acts as trustee/liquidator if there is no private sector insolvency practitioner in place
• Providing impartial advice to members of the public on debt and insolvency matters

Many people consider that making themselves bankrupt is an 'easy' option if they encounter debt or financial problems.  In making the application process simpler, the Insolvency Service may have inadvertently encouraged more people to take this step.

If you are considering making yourself bankrupt, it is important for you to take advice first because bankruptcy can have far reaching effects. You will not be able to secure a loan or a mortgage and your credit rating will be affected. You may also have difficulties in selling your house or dealing with your assets.

To discuss this or any other insolvency related issue, contact us.