Apply to bankrupt someone who owes you money

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1. Overview

You have to present a bankruptcy petition to a court if you want to bankrupt someone because they owe you money.

There are also other ways to recover money you鈥檙e owed.

A bankruptcy petition is an application to the court for someone鈥檚 assets to be taken and sold to pay their debts.

Presenting a petition can be complicated. Most people use a solicitor or other professional to help them.

Using a mediation service could be quicker and cheaper. Mediation is when an impartial person helps 2 sides work out an agreement.

You can contact the Insolvency Service if you have questions about making someone bankrupt.

You cannot petition to bankrupt someone if you鈥檙e told that they are temporarily protected from creditors through the 鈥楤reathing Space鈥� scheme. Find out what to do when someone is using the 鈥楤reathing Space鈥� scheme.

How to present a petition

  1. Prove you鈥檙e owed at least 拢5,000 or a share of debts totalling at least 拢5,000.

  2. Check for other bankruptcy petitions against the person who owes you money (the 鈥榙ebtor鈥�).

  3. Fill in the forms and deliver them to the court.

Fees

The court fees to make someone bankrupt are:

  • 拢1,500 petition deposit (for managing the bankruptcy)
  • 拢332 for court costs

Pay the fees using cash, postal order or a cheque made payable to 鈥楬M Courts and Tribunals Service鈥�. You can pay by credit or debit card if you apply online.

2. Prove you're owed 拢5,000 or more

To make someone bankrupt you must be owed one of the following:

  • at least 拢5,000
  • a share of debts that total at least 拢5,000

You must provide evidence to the court that you鈥檙e owed this money. There are 2 ways to do this.

If you鈥檝e issued a statutory demand (a request for payment) to the debtor, confirm that you did this by filling in a certificate of service (form N215).

Alternatively, get a sheriff鈥檚 or bailiff鈥檚 statement showing:

  • you got a court judgment for the money
  • the sheriff or bailiff could not recover enough assets to pay the debt

3. Check for other bankruptcy petitions

You must check if the debtor has had any bankruptcy petitions against them in the past 18 months. These checks are called 鈥榮earches鈥�.

Most petitions are presented in the area where the debtor lives. Government departments, including HM Revenue and Customs (HMRC), present all petitions in London.

Check for petitions presented in London

Carry out checks using the public computers at either:

  • the of the Royal Courts of Justice
  • the

It costs 拢11 to use the computers for 15 minutes. You can pay by debit or credit card or with cash.

Check for petitions presented in a county court outside London

Contact the county court for the area where the debtor lives.

They鈥檒l advise you how to check for petitions.

When you鈥檝e made your checks

You must confirm you鈥檝e carried out the searches by writing a declaration - use the wording below and fill in the petition number and the name of the court if applicable.

I/we certify that I/we have conducted a search for petitions presented against the debtor in the period of 18 months ending today and that either:

- no prior petitions have been presented in the said period which are still pending
- a prior petition (Number鈥︹�︹�︹�︹�︹��.) has been presented and is pending in the 鈥︹�︹�︹�︹�︹�︹�� Court and we are issuing this petition at risk as to costs.

Signed鈥︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹�︹��.. Date鈥︹�︹�︹�︹�︹�︹�︹�︹�︹��..

Sign and date the declaration and attach it to your petition form.

If there鈥檚 already a petition or bankruptcy order

It鈥檚 cheaper to support an existing petition than to present your own. Notify the petitioner using the contact details on the petition.

If there鈥檚 already a bankruptcy order, you cannot continue with your petition. Register as a creditor instead.

4. Apply

The bankruptcy petition form you fill in depends on whether:

You鈥檒l also need to provide the following as part of the petition:

Presenting the petition

How you present the petition will depend on the debtor鈥檚 circumstances.

if the debtor either:

  • lives in London and owes you 拢50,000 or more
  • has 鈥榥o fixed abode鈥� (no fixed or regular address)

It鈥檒l go to the High Court.

Otherwise, give the petition in person to the county court nearest to where the debtor lives or works.

If the debtor owns a business

Choose the court nearest to the debtor鈥檚 business address unless this changed in the last 6 months and they鈥檝e been at their home address longer.

After you apply

You鈥檒l need to give (鈥榮erve鈥�) a copy of the petition to the debtor in person.

If the debtor has an individual voluntary arrangement (IVA) you鈥檒l also need to give a copy to the supervisor.

Send the court a certificate of service (form N215) to confirm you鈥檝e done this.

If your case is with the High Court you can only . If it鈥檚 with another court you can send it there by post.

If you cannot serve the petition to the debtor in person

You can ask the court for permission to serve it in another way, for example by post.

You鈥檒l have to provide a certificate of service confirming you鈥檝e used a 鈥榮ubstituted service鈥�.

Court hearing

The court will tell you where and when the petition will be heard. This will be at least 14 days after you served the petition to the debtor.

The debtor can oppose the petition by giving the court a statement of truth at least 5 days before the hearing.

You must list the people that you want to appear and speak at the hearing.

The debtor and a supervisor of an IVA can also appear and speak at the hearing.

At the end of the hearing the court can:

  • stay (delay or stop) the petition
  • dismiss the petition
  • adjourn (postpone) the hearing
  • make a bankruptcy order

If the court dismisses your petition, you鈥檒l get your petition deposit back.

Read more about what happens after a bankruptcy order is made.

After the hearing

An official receiver at the Insolvency Service will deal with the early stages of a bankruptcy and send you a report.

This usually takes 4 weeks, but can take 12 weeks, or longer if a case is complicated.

Appeals

You can appeal to the court if your petition is rejected.

Check with the court where you made your petition for how to appeal.