Debt Glossary - Bankruptcy Petition

The bankruptcy process begins with a bankruptcy petition being presented by either the debtor or by their creditors.

Debtors Petition

When a person in debt decides to become bankrupt they must first petition the County Court of the insolvency district where they live. When presenting the petition two fees are due. These fees are a court fee of £140 and a deposit towards the administration of the order of £310.

Creditors Petition

If an individual creditor is owed more than £750 they can petition for the debtor to be made bankrupt. Alternatively multiple creditors can join together to meet the £750 requirement.

Bankruptcy proceedings can only begin if :

• the debt owed is unsecured and
• is for a fixed sum which the debtor ‘appears unable to pay’.

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