What is Bankruptcy?

You can apply for bankruptcy if you are unable to pay back your debt.

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How Bankruptcy Works

You can apply for your own bankruptcy application or someone you owe money to can also do this on your behalf

  • 1. Applying for this yourself online
  • 2. A creditor you owe money to can do this on your behalf
  • 3. An IVA supervisor can petition for you to go bankrupt

The Bankruptcy Process

Speak with one of our advisors who can help you to decide whether bankruptcy is the right debt solution for you. There may be alternatives to bankruptcy that you could consider.
Fill out your bankruptcy form on the government website and ensure that the £130 application fee and your bankruptcy deposit fee of £550 is paid.
You will receive a letter from the Official Receiver/Accountant in Bankruptcy detailing everything you must do.
Your bank accounts may be frozen, and you will be interviewed by your Trustee and must cooperate with their requests for information.
Your Trustee will decide whether you need to make monthly payments toward your debt and which of your assets will be sold
Details of bankruptcies are recorded on the public Individual Insolvency Register in England, Wales and Northern Ireland, and the Register of Insolvencies in Scotland.

What is Bankruptcy?

Bankruptcy is available to those living in England, Northern Ireland and Wales.

Bankruptcy is a legally binding debt solution to resolve a debt problem that cannot be resolved. In Scotland, this is sometimes called sequestration.

Who Can Apply for Bankruptcy?

If you can’t pay what you owe you can apply for bankruptcy.


  • All of the debts entered are written off
  • You may be discharged after 12 months
  • Take away the pressure from creditors


  • The official receiver will take control of all your finances and assets and they would decide what happens with these
  • Your credit file will be affected for 6 years
  • To petition for your own bankruptcy it could cost £680 (all though you can pay in instalments)
  • If they calculate you have disposable income they can ask you to pay this for up to 36 months.
  • Bankruptcy can affect certain types of jobs.

Money Helper

Money Helper is an important service set up by the Government. They provide free debt counselling, debt adjustment and credit information.