When you file for bankruptcy in the United Kingdom, you are handing over all of your assets to the court to use to pay off your creditors.  This is a very scary proposition for anyone, and unfortunately the current global economic condition is causing many people to seek out this route in order to simply survive.  Going into a bankruptcy forewarned is to be forearmed and many people have no clue what goes on when it comes time to face the judge on your case.  Knowing what happens in bankruptcy court before it happens will help you stay calm and collected as the proceedings take place because you already know what to expect. 

Before you even enter the court, you will be notified whether or not the court will hear your bankruptcy petition right away, or they will ask for time to look over your petition and schedule a hearing at a later time.  At the hearing itself there are four things that could happen.  The first thing that could happen is that the judge issues a stay - or delay - of the proceedings.  This is usually done because the court feels that more information is needed from you before they can determine whether or not to file a bankruptcy order. 

Sometimes the court will completely dismiss the petition, feeling that an administration order is the better route to go for your particular case.  What this means is the court will issue a certificate of summary administration if you meet certain criteria and your bankruptcy will be discharged two years after the bankruptcy order date.  The criterion to be met includes but is not limited to: less than £20,000 in unsecured debts; you have not filed for bankruptcy in the previous five years; and you have not made an Individual Voluntary Arrangement with any or your creditors.  This is a quicker and simpler resolution to your bankruptcy. 

The third thing the court could do is appoint an insolvency practitioner if they think that an Individual Voluntary Arrangement is better for your particular case.  Once again you need to meet the same criteria as an administration order and your assets are more than £2,000.  You have the option of telling the courts that you do not want this type of resolution. 

Finally, the courts could simply file a bankruptcy order, making you bankrupt as soon as the order is made.  In this instance you bankruptcy will be discharged three years from the date of the bankruptcy order. 

As you can see, the courts do attempt to help you by providing you with levels of bankruptcy.  This is done to protect you and help you re-establish your life with less headaches and stress due to money woes.