Bankruptcy Hearing

At a Bankruptcy Hearing, a district judge considers the bankruptcy petition to decide whether or not to make a bankruptcy order. Once a bankruptcy order is made, you are then officially bankrupt.

You (the debtor) and the Official Receiver attend the Bankruptcy Hearing. Creditors or their representatives can attend if they wish.

In order for the judge/court to make a bankruptcy order, it must be satisfied that the debt is proven and that either:-

  • The debtor can’t repay the debt.
  • In the case when payment is not yet due, that the debtor has not realistic change of being able to repay the debt when it is due.

When the petition is served by a creditor, they must prove that a corresponding Statutory Demand has been brought to your (the debtor’s) attention.

If you have already repaid the debt in full, then the case will be dismissed, but you may still have to paid the creditors costs. If more than £750, then pursuit of these costs could result in fresh bankruptcy proceedings.

Reasons why a Bankruptcy order may not be made.

  • In the court’s opinion, the creditor has refused to accept reasonable payment by installment or a reasonable reduced full and final payment to settle the debt.
  • You have reduced the debt to under £750 in between date of petition and date of hearing.
  • An agreement is reached at the hearing for the repayment of the debt.

When the bankruptcy order is made, here are normally 3 elements.