To declare yourself bankrupt, you will have to apply to a court of law to do so. This is called a petition for bankruptcy in legal terms.

The paperwork

To petition for bankruptcy you will need to fill out two forms.

The first is the petition or application for bankruptcy itself (Insolvency Rules 1986 form 6.27). The petition is you asking the Court to make you bankrupt and it requires you to state your reasons for wanting to be made bankrupt.

The second form is the statement of affairs (Insolvency Rules 1986 form 6.28). On this form you will need to list anything that belongs to you that may be used to pay your debts and all your debts, including the names and addresses of the creditors and how much you owe each of them.

The statement of affairs also requires you to swear on oath that you are insolvent and unable to pay your debts and this needs to be done before an officer of the court or a solicitor.

You can get the forms free of charge from a local court that deals with bankruptcy. You can also complete the forms online or print them off at The Insolvency Service's website.

Submitting the paperwork

You will need to petition for bankruptcy through a court of law. Not all courts in England and Wales can deal with bankruptcy cases. A list of the courts that do handle bankruptcy petitions can be found here.

Unfortunately, there are also a number of fees to be paid when petitioning for bankruptcy.

There is a court fee of £150. The court does have limited powers to reduce or waive this fee in certain circumstances and court officials will be able to tell you if you qualify for either a reduction or exemption.

You are also required to pay a deposit of £325 towards the costs of administering your bankruptcy. This sum is payable in all cases, but you may be able to get help with paying this from a charitable trust if you are facing severe financial hardship.

You will also have to pay a £7 charge to swear the statements of affairs if you do this in the High Court or before a solicitor. If you are petitioning for bankruptcy in a county court no charge is made.

In the worst case scenario, it will cost you £482 to petition for bankruptcy.

If you are married and you and your partner are both applying for bankruptcy, you will each have to pay separate fees. If you were in business as a partnership, each partner will have to pay separate fees, unless all the partners apply for a joint bankruptcy petition under the Insolvent Partnerships Order 1994 (Form 16).

All fees have to be paid in cash or by postal order or guaranteed cheque. Personal cheques are not accepted.

Inside the court

The court will either hear your petition for bankruptcy straight away or arrange a time for the court to consider it. The outcome will be one of the following:

A stay or delay in the proceedings - often because the court needs further information before it can decide whether or not to make a bankruptcy order.

The petition will be dismissed - perhaps because an administration order would be more appropriate.

An insolvency practitioner will be appointed - if the court thinks an individual voluntary arrangement would be more appropriate. This will only be possible if your assets are more than £4,000, your unsecured debts are less than £40,000, and you have not been bankrupt and have not made an individual voluntary arrangement in the previous five years.

A bankruptcy order will be made - and you will become bankrupt the moment the order is made by the court. If a bankruptcy order is made, the official receiver will be responsible for administering your bankruptcy and protecting your
assets from the date of the bankruptcy order. He or she will act as your trustee in
bankruptcy unless the court appoints an insolvency practitioner to take this role.