Petitioning for bankruptcy is the first step towards declaring bankruptcy in the courts.
By filling out the correct petition forms, whether it be online or by hand, you are submitting to have a bankruptcy order be made against you.
Who can petition for bankruptcy
Petioning for bankruptcy can be done through either the creditor or debtor. If you have accumulated debt over £750, the lender who gave you that credit has the right to petition you for bankruptcy.
When a creditor is petitioning you for bankruptcy, it is often better to attempt to settle the matter before the petition has been brought in front of the courts. This can save time and money on both sides of the debt problem.
You also have the option of petitioning yourself for bankruptcy. By filing a petition and accompanying it with forms that show your current assets and what you own, you are taking one of the final and most serious forms of dealing with unsolvable debt.
Petitioning for bankruptcy should not be taken lightly. It's a drastic form of debt solution and all other options should be considered before declaring bankruptcy. We have more information on the pros and cons of declaring bankruptcy.
Bankruptcy advice from Legal Advice Helpline
Bankruptcy is often the only option for many people who struggle with debt. However, there are many options for dealing with debt.
Debt help is available through Legal Advice Helpline. Through us, you have information on IVA's, debt management plans, Scottish Trust Deeds, and financial planning at your fingertips.