A petition for bankruptcy can be presented in the County Court against any person owing at least £750. Such proceedings are a very serious matter and if a bankruptcy order is made you can expect to lose your assets, including your home.
The first stage of the bankruptcy process is service of a statutory demand for payment in full. It is essential that anyone who receives such a demand deals with matters immediately. Failure to do so could result in the issue of a Bankruptcy Petition. If declared bankrupt you could incur several thousand pounds of legal and court costs plus a County Court record that would affect your ability to obtain credit.
Bankrupts are also disqualified from being company directors. Anyone else you owe money to may join themselves to a petition making it more difficult for you to resolve.
If you owe the council any kind of sizeable debt, it is essential that you contact the council tax section and agree a programme of payments.
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