Bankruptcy is a legal procedure usually suited for people whose circumstances are unlikely to change, and who have little hope of paying off their debts within a reasonable time.
Bankruptcy works differently depending on where you live in the UK. If you’re living in Scotland, please speak to our advisors about a Sequestration (Scottish bankruptcy). If you live in England, Wales or Northern Ireland the information below outlines the bankruptcy process.
When you go bankrupt, most unsecured debts are written off, allowing you to make a fresh start. However, declaring yourself bankrupt should not be taken lightly as it can impact many areas of your life, such as your job and / or home. You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living.
Bankruptcy typically lasts for 12 months and there are usually no payments required. However, you may be required to make payments into your Bankruptcy for up to 3 years under an Income Payments Order if you have any disposable income once your bills and essential living costs are covered.
In England and Wales you pay a total of £680, made up of a £130 fee to the adjudicator and £550 to the official receiver.
In Northern Ireland the total cost is £676 made up of a £151 court fee and £525 bankruptcy deposit. You can pay the fee in installments however you must have paid the fee in full before the application is made.