What does bankruptcy proceedings mean for me?

If we take this action, we will pass your account to our solicitors who will send you a statutory demand. If you receive a statutory demand, you should contact us immediately on 01205 314200. An agreement to settle the debt can still be made before we present a petition to the County Court.

If you do not settle the statutory demand, we will present a petition for bankruptcy or liquidation to the county court, which can make a bankruptcy order.

A bankruptcy order can be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun.

If you are declared bankrupt:

• your bank accounts will be frozen
• the official receiver will investigate your affairs and will control your spending for three years
• you will no longer control your assets, and any asset you might acquire during the term of the bankruptcy, such as inheritances, insurance payouts/maturities, will be lost
• you may not be able to obtain credit for over £500
• your home could be sold to pay your debts

For more information on bankruptcy

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