If you are unable to pay your debts and the amount owed is more than the value of the items you own, you may be able to declare yourself bankrupt.
Anyone who is unable to pay their debts is able to apply for bankruptcy. However, it is advisable to check if there are other potential debt solutions first before you apply.
The typical bankruptcy period is 12 months and, during this time, the majority of your creditors won’t be able to get in touch with you to discuss your debts or take you to court.
You will need to pay £680 if you decide that applying for bankruptcy is the right route for you. You can pay this in instalments, but the full amount will need to be paid before the application is submitted.
If you have a small amount of spare income, you may be asked to make payments towards bankruptcy debts, unless your only income is from benefits or if you have none leftover after paying reasonable living costs.
Your bankruptcy will be published on the Insolvency Register, including your name and address. You can request for your address to be hidden when you apply for bankruptcy.
Bankruptcy may be able to help you with the following debts: credit cards, overdrafts, loans, rent arrears, utility bills, payday loans, store cards, catalogues etc.
Credit Cards
Payday Loans
Store Cards
Overdrafts
Personal Loans
Lines of Credit
Business Debt
Catalogues
Bankruptcy cannot be used to clear the following debts: TV licence arrears, student loans, social fund loans, court fines, child maintenance arrears, fraudulent debts, mortgages and secured loans if it is wished for the property to be kept, court orders for personal injury payments.
Child Maintenance Arrears
Fraudulent Debt
Court fines
TV license arrears
Student loans
Mortgages/Secured Loans
Social fund loans
Personal Injury Court Payments
Fresh Start UK has helped more than 12,000 people gain control of their finances and be debt-free. If you’re struggling with debt and finding it tough to keep up with your bills, speak to an adviser today.
Get Started
Get started right away and complete the petition online.
100% of your debt is written off – only debts included and only once you are discharged.
A formal agreement, offering protection from creditors.
Bankruptcy can be suitable for homeowners, but equity may need to be released and property may be at risk.
Low fees to go Bankrupt and usually no further payments, unless a payment order is agreed.
There are restrictions on borrowing.
Fees are payable in advance of going bankrupt
Bankruptcy is a form of insolvency and will appear on public register. It may also impact your ability to work in certain roles – for example, acting as a Company Director.
Impact on credit file – 6 years from the start.
Your Bankruptcy may not be approved
Money Helper has replaced the Money Advice Service and brings together the support and services of three government-backed financial guidance providers: the Money Advice Service, the Pensions Advisory Service and Pension Wise.