Bankruptcy moves online

Bankruptcy used to mean a visit to the court, but new rules mean it can now be done online.

 
On the 6th April 2016, the bankruptcy application process was changed. So how do you apply for bankruptcy? If you have been advised that applying for bankruptcy is the best option for you, below is an overview of these changes and how they might affect you. 
 
If you’re struggling with debt and are unsure of the best solution for you, please call our advisers on 0800 043 40 50
 
Previously if you wished to declare bankruptcy, you would need to fill in the application forms and make three photocopies, before attending court to submit your forms and possibly see a judge.  
 
The new changes mean that you now have to fill in your bankruptcy application online and submit your completed application electronically to an adjudicator who makes a decision on it. You no longer have to go to court. Occasionally you may be requested to take part in an interview, either face-to-face or on the telephone. Adjudicators aren’t judges, they work for the Insolvency Service, which is part of the Government. 
 
Despite being for those in debt, the bankruptcy process is not free. Previously the fee was £705 and paid in a lump sum, but the new online system means that it has been reduced slightly to £655 and can be paid both online and in installments. This should make the cost more manageable. The fees are broken down into two sections; £130 for considering your application, and £525 for managing the bankruptcy for you. 
 
If you submitted your fees and paper bankruptcy application before the change on the 6th April, it will be processed the old way through the court. However if you haven’t submitted it to the court you will have to start again using the new online application.
 
Our fully-trained debt advisers can guide you on how to apply for bankruptcy using the new bankruptcy application system in the strictest confidence.  Just call 0800 043 40 50.
 
You can find out more about the new process on the GOV.UK apply for bankruptcy pages.