Bankruptcy Hearing – Creditors Petition

Bankruptcy on a creditor’s petition always involves a Court hearing.

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, or
  • In the case when payment is not yet due, that the debtor has no realistic chance of being able to repay the debt when it is due.

If you have already repaid the debt in full, then the case will be dismissed, but you may still have to pay the creditors costs if this repayment was after the presentation of the petition.

Reasons A Bankruptcy Order May Not Be Made

  • If, 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.
  • An agreement is reached at the hearing for the repayment of the debt.

When the bankruptcy order is made, there are normally 4 elements to it:

  • A bankruptcy period of 12 months.
  • Lump sums to be raised by the sale of assets, for example home or car (see Your Assets & Bankruptcy for details).
  • Monthly contributions from income (see Payment from income during Bankruptcy for details).
  • Claims to property you ‘acquire’ (eg inherit) after the date of the bankruptcy order and before discharge from bankruptcy.


Money Helper (formerly The Money Advice Service) is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. is not regulated and is for fact-finding only. We can help assess your circumstances and point you to someone who can provide available options that suit your debt criteria.

If an individual meets the required criteria for an IVA based on our packaged case, this will be passed to one of our partnering Insolvency Practitioners to get direct advice. If the individual does not meet the criteria for an IVA, The Insolvency practitioner is able to provide contact information for other third-party organisations that offer advice on other available debt solutions. For full details view our Privacy Policy.

If you decide that an IVA (Individual Voluntary Agreement) is not the best option for you after we have prepared the necessary information, you can opt out of the process and have all of your details removed. We receive a fee from the third party that we refer you to for introducing you and for the work we have completed. However, you will not be responsible for paying this fee. The third party will contact you directly to continue the process of your IVA application or to explore other solutions, but only with your permission after we have introduced you.