Know Common Myths About Bankruptcy in UK by Bankruptcy Support4u

A Bankruptcy Government debt grant?
Many people are under the assumption that the government will provide a debt grant to cover the bankruptcy fees for people going bankrupt! However this is completely untrue and mis-leading. An individual is completely responsible for the bankruptcy fees and the declaration of information on the statement of affairs.

Creditors cannot make me bankrupt
If you have broken the terms and conditions of a credit agreement and you have not made any attempts to pay your creditors for a prolonged period of time, your creditors can petition for your bankruptcy. This is done with the issuing of a statutory demand.

Note that many of these demands are issued as a scare tactic to get you into a repayment plan. However if you receive one, always seek professional Help with bankruptcy advice rather than ignore it which can usually make the situation worse.

Bankruptcy is heard in court in front of a Judge - I'm too scared!
Bankruptcy is generally presented in the nearest county court to you that deal with insolvency; however it's not done in a court room with a bevy of observers.
In some cases may need to see a judge, but this is done in the judge's chambers (his/her office) and all they want to be sure of is that you're aware of your actions in going bankrupt and that you have been properly advised.

The next time you hear anything is from the Official Receiver (OR) who deals with your bankruptcy. The OR will usually conduct his/her work by phone.
Declaring bankruptcy in the UK is generally quiet straight forward as long as the individual adheres to the process and discloses all the information in the statement of affairs truthfully.

I need an accountant to go bankrupt?
If you're self-employed an accountant may be able to offer some advice but most advice can be taken from any specialist Bankruptcy Service uk.
Most specialist companies charge a fee for an €assisted bankruptcy' service. This will ensure your bankruptcy is filed properly.

I could get evicted out of my rented house?
Most rental agreements have a section about insolvency and most of these agreements suggest that if you become insolvent that you must leave the property.
This wording is usually used to protect the landlord in case of non-payment of rent. As rent is a priority outgoing this will need to be paid and accounted for in the budget you put together with the Official Receiver. As long the rent is paid most landlords will not ask a bankrupt tenant to vacate a property.

And a bonus myth: I'll never get another bank account
When you petition for your bankruptcy your bank accounts will be frozen. Some banks will not allow an un-discharged bankrupt to continue to bank with them. However, there are still banks that allow bankrupts to open basic banking facilities and operate them while un-discharged.
For more detailed free bankruptcy advice please contact one of our specialist advisors on 0800 0436260.