However, creditors don't often petition as it cost them more to make you bankrupt than it does if you do it yourself.
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A statutory demand gives a person a 21 day warning to pay a debt, without invoking any court action. After that, the demand has run its course and MAY be followed by BR proceedings. In the vast majority of cases this doesn't happen however.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Thanks for the info ok more questions.
1 - If a creditor petitions for my bankruptcy roughly how much will it cost them?
2 - As I have several creditors and one of them petitions for my bankruptcy does that one then have an advantage over the others or will each creditor get an even split of any assets etc.
Thanks again
Not too sure of any precise figure, but it is estimated that a creditor funded BR petition costs £1500 and over, which is why they rarely go down this route if they can avoid it. If you are made Br then the Official Receiver will look at all claims against any assets or income, not just the one funding the petition.
Regards.
Last edited by size5 on Wed Jul 22, 2009 8:39 am, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I don't know how much it will cost a creditor to make you BR.
If a creditor makes you BR all other outstanding debts will be included and any money from the sale of assets or an IPA will be divided between all creditors on a pro rata basis after the OR has taken their fees.
The current Court cost for a creditor petition is around £680, then there will be petitioning creditor's legal costs on top. The OR will charge at least £1,700 for administering the bankruptcy, and if realisations are more than £2,000, 17% of the balance will be automatically deducted by the Insolvency Service as an Ad Valorem Fee.
Bankruptcy is an expensive business for creditors, which is why they rarely use this route to recover their debts.
