Completing a Bankruptcy Application for the First Time

Are you struggling to pay personal debts? Then you might be considering a personal bankruptcy application in order to improve your financial situation.

Declaring bankruptcy can wipe off large debts and provide you with a fresh financial start once the initial 12-month bankruptcy period has ended. Bankruptcy might be a daunting prospect to undertake, but the bankruptcy application process can be submitted online and is often straightforward.

However, bankruptcy will have severe and long-lasting effects on your personal finance and business prospects, and should never be entered into without prior consultation with a licensed insolvency practitioner. If you’re considering completing a bankruptcy application for the first time, the expert team at Irwin Insolvency is here to explain everything you need to know.

How Do I Complete a Bankruptcy Application?

Individuals with large personal debts can consider applying for bankruptcy as an insolvency solution.

Bankruptcy wipes out large debts and can offer you a fresh financial start, but you may lose important assets such as your family home or business and will struggle to secure credit for several years to come.

Never apply for bankruptcy before speaking with an insolvency advisor, as there may be alternatives such as debt relief orders or individual voluntary arrangements that are better suited to your personal situation.

Bankruptcy is best undertaken as a last resort, but if it’s the most appropriate option for you, the process needs to be completed online at a cost of £680. Once completed, a bankruptcy application will be approved or denied by an appointed official receiver within 28 days of being lodged.

Supplying incorrect or incomplete information can slow down the process, but Irwin Insolvency can provide impartial financial advice, insolvency recommendations and assistance to make the online bankruptcy application process run smoothly.

To help you understand the process, here’s a step-by-step guide to applying online for bankruptcy.

1. Create an Online Account for the Application Process

To begin the bankruptcy application process, you first need to visit the bankruptcy portal on the government website, where you’ll be directed to create an account.

You’ll need to provide personal information that enables the government to verify who you are, and fill in the required forms in order to create the account you’ll use going forwards with the application.

Once the account has been created and verified, remember to safely save your username and password associated with the new account. You’ll then be able to save, exit and return to your account and application as often as needed before submitting.

2. Collect the Required Documents

To submit your application, there are several different documents and types of evidence that will be required.

It’s a good idea to collect the required documents before you begin filling in the application, to ensure you have everything necessary. This will speed up the process and help with accuracy.

To declare you bankrupt, the official receiver who assesses your application will need to not only verify your identity but be certain you are in fact insolvent. To do this, they’ll need access to the following:

  • Evidence of income, including wage slips or bank statements
  • Any benefits or pensions statements
  • Evidence of assets, including savings, investments and property
  • Evidence of outgoings and debts, including credit card statements, council tax bills and electric bills
  • Any correspondence with bailiffs, creditors or debt collection agencies

3. Complete the Online Bankruptcy Application Form

There are eight sections to complete during the online bankruptcy application process. You will need to fill in all the required fields for each section and supply or upload any evidence or supporting documentation.

The eight sections that need to be completed are:

  • Personal details
  • Employment history
  • Bank accounts and savings
  • Assets
  • Money you owe
  • Income and expenses
  • Legal proceedings
  • Debt history

4. Pay the Application Fee and Press Submit

Once you’ve completed the required fields, check over your application and get ready to submit it online. At this point, it may be useful to have the application checked by a professional to ensure there won’t be any delays later on.

Before you can submit the application, you need to pay the application fee. This is a total of £680, and you cannot continue until it’s been paid to the Insolvency Service. If you cannot pay the full amount, you have the option to set up a payment plan and to pay in installments.

If you cannot pay the full amount and owe over £5,000 to creditors, your creditors may be able to apply for bankruptcy on your behalf. Bear in mind, that this is a completely different application process to the one being discussed here.

Once payment has been received, you can submit your bankruptcy application online.

5. Wait for Your Bankruptcy Application to Be Processed

After your bankruptcy application has been submitted, it has to be reviewed by the government’s Insolvency Service. This is the organisation that oversees all insolvencies in the United Kingdom, including personal bankruptcy.

The Insolvency Service will appoint an official receiver to assess your case for bankruptcy. They will look over your application and the supporting evidence and documents, and then make a decision as to whether to approve the bankruptcy or not. If the application has been submitted correctly, there are very few reasons for it to be denied. You will be notified of the decision within 28 days of submission.

If the bankruptcy application is approved, you will become subject to a bankruptcy order and will be deemed to be an undischarged bankrupt for a period of 12 months. During this time you are legally bound to follow the terms of your bankruptcy order. The official receiver will set these terms.

Contact Irwin Insolvency Today for More Information on Completing a Bankruptcy Application

If you need assistance completing a bankruptcy application for the first time, Irwin Insolvency is here to help.

Our team of licensed insolvency practitioners is on hand to provide you with expert financial advice. With years of insolvency experience, we guarantee to make the bankruptcy process as smooth as possible.

Contact Irwin Insolvency today for your free consultation.

Contact Irwin Insolvency today for your free consultation

Call us
0800 009 3173

About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency, rescue and turnaround.