Issuing a bankruptcy petition

Bankruptcy Petition – the details

If you are preparing a petition, then you should go to The Insolvency (England and Wales) Rules 2016 in order to ensure that you have the right details on the content which needs to be included in the petition. 

Whilst there is no prescribed form which you are required to use, there are suggested forms available on the HM Courts and Tribunal Service website.

The key point that we would recommend you bear in mind is that you should always obtain legal advice if you want to issue a bankruptcy petition. We would recommend this to ensure that you approach it in the right way and issue the right form.

The relevant Insolvency Rules for a Bankruptcy Petition:

Rules 10.7 to 10.9 of the Insolvency (England and Wales) Rules 2016

The key information and details that are needed to deal with and produce a bankruptcy petition are as follows:

Rules 10.7 to 10.9 of the Insolvency (England and Wales) Rules 2016 – which are set out below:

Rule 10.7

The petition must state the following details:

the name and postal address of the petitioner;

• where the petitioner is represented by a solicitor, the name, postal address and telephone number of the solicitor;
• that the petitioner requests that the court make a bankruptcy order against the debtor;

whether:

• the debtor’s centre of main interests is within a member State,
• the debtor’s centre of main interests is not within a member State, or
• the debtor carries on business as an Article 1.2 undertaking;

whether the debtor:

• is resident in England and Wales, or
• is not resident in England and Wales;

whether the petition is presented to:

• the high court;
• county court at Central London, or
• a specified hearing centre; and

the reasons why the court or hearing centre to which the petition is presented is the correct court or hearing centre under rule 10.11.

If the petition is based on a statutory demand, and more than four months have elapsed between the service of the demand and the presentation of the petition, the petition must explain the reasons for the delay.

The petition must also contain a blank box for the court to complete with the details of the venue for hearing the petition.

Rule 10.8 – Identification of the debtor

The petition must state the following matters about the debtor, so far as they are within the petitioner’s knowledge: 

• the debtor’s identification details;
• the occupation (if any) of the debtor;
• the name or names in which the debtor carries on business, if other than the name of the debtor, and whether, in the case of any business of a specified nature, the debtor carries it on alone or with others;
• the nature of the debtor’s business, and the address or addresses at which it is carried on;
• any name or names, other than the name of the debtor, in which the debtor has carried on business at or after the time when the debt was incurred, and whether the debtor has done so alone or with others;
• any address or addresses at which the debtor has resided or carried on business at or after that time, and the nature of that business; and
• whether the centre of main interests or an establishment of the debtor (as defined in Article 2(h) of the EC Regulation) is in another member State.

The particulars of the debtor given under this rule determine the title of the proceedings.

If to the petitioner’s knowledge the debtor has used any name other than the one specified under paragraph (1)(a), that fact must be stated in the petition.

Rule 10.9 – Identification of debt

The petition must state for each debt in relation to which it is presented

• the amount of the debt, the consideration for it (or, if there is no consideration, the way in which it arises) and the fact that it is owed to the petitioner;
• when the debt was incurred or became due;
• if the amount of the debt includes any charge by way of interest not previously notified to the debtor as a liability of the debtor’s, the amount or rate of the charge (separately identified);
• if the amount of the debt includes any other charge accruing from time to time, the amount or rate of the charge (separately identified);
• the grounds on which any such a charge is claimed to form part of the debt, provided that the amount or rate must, in the case of a petition based on a statutory demand, be limited to that claimed in the demand;
• that the debt is unsecured (subject to section 269); and

either:

• that the debt is for a liquidated sum payable immediately, and the debtor appears to be unable to pay it, or
  • that the debt is for a liquidated sum payable at some certain, future time (that time to be specified), and the debtor appears to have no reasonable prospect of being able to pay it.
• specify the date and manner of service of the statutory demand; and
• state that, to the best of the creditor’s knowledge and belief:
  • the demand has been neither complied with nor set aside in accordance with these Rules, and
  • that no application to set it aside is outstanding.

Where the debt is one for which, under section 268, a statutory demand must have been served on the debtor, the petition must:

If the case is within section 268(1)(b) (unsatisfied execution or process in respect of judgment debt, etc.) the petition must state which court issued the execution or other process and give particulars of the return.

The Court may decline to file the petition if not satisfied that the creditor has discharged the obligation imposed by rule 10.2.

How Long Does the Bankruptcy Petition Process Take?

If the case is routine, then the process from the petition being issued to the court hearing usually takes in the region of six to eight weeks – depending on the workload at the court. If the debtor disputes the petition or there are negotiations in relation to the amount claimed, then it can lead to adjournments which will extend the time frame.

Next Steps

If you receive a statutory demand or a bankruptcy petition then it is a serious event, however with the right advice as early as possible, it is possible to negotiate through it and prevent you from being made bankrupt. For further help and advice you can contact Richard Ludlow on 01732 496 496.