Bankruptcy and Charging Orders

Bankruptcy
Other options available to us for recovering the debt include bankruptcy proceedings if the debt is more than £750. If we go ahead with bankruptcy proceedings, you could:

• lose all your major assets;
• lose the use of your bank and building society accounts;
• find that your access to credit in the future will be affected;
• be required to co-operate with the person appointed to administer the bankruptcy - you would be in contempt of court if you did not do so.

A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. Bankruptcy deals with debts on the date on which the order is made. If you incur new debts after that date, it could result in a further bankruptcy order.

Charging Orders
For a debt of £1000 or more, we can apply for a charging order. This means that if your property is sold, we will get the amount you owe direct from the sale before any other disbursements are made.

Bankruptcy proceedings and charging orders are undertaken in the County Court.

Page last updated on 28 November 2011