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Creditor bankruptcy petitions — what happens next

A hearing date is set. You can pay, negotiate, propose an IVA, or dispute the petition. Doing nothing means bankruptcy.

Bankruptcy Petitions3 min readReviewed July 2026

A creditor petition follows an unpaid statutory demand or an unsatisfied judgment. Once filed, a hearing date is set — usually within a few weeks. The threshold for personal petitions is £5,000+ of unsecured debt owed to that creditor (or combined creditors).

You can stop bankruptcy by paying the debt (including the petition costs), by proposing an IVA that the court accepts, or by asking the court to dismiss the petition if the debt is disputed or the process has been used unfairly.

If bankruptcy is the right outcome, you can also apply for your own bankruptcy via the Insolvency Service — it's often cheaper and gives you more control than a creditor-driven petition.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.