You must owe £3,000 or more before a creditor can make you bankrupt (although two or more creditors can club together and apply to make you bankrupt). Non-priority creditors are less likely to make you bankrupt than priority creditors because it costs them money in fees and costs.
You can make yourself bankrupt if you meet certain criteria, but you have to pay a fee. Your bankruptcy will normally last for six months or one year, depending upon how you went bankrupt. After this, debts that have not been paid are usually written off and you are discharged from the bankruptcy. You may still have to make monthly payments for a total of four years under the terms of your bankruptcy order. If a creditor has threatened to make you bankrupt, or you think it may be an option for you to consider, contact us for advice.
If you are a partner in a partnership you will need consider whether you should make your partnership bankrupt we well as making yourself personally bankrupt. There are different fees to pay and forms to complete if you are applying to make your partnership bankrupt. Contact us for advice.