OnlineDMP Login (Manage your DMP)
StepChange Debt Charity logo

Free advice on problem debt
based on what's best for you

0800 138 1111 Freephone - including all mobiles

  Go

Bankruptcy. Is it right for you?

Bankruptcy can help rid you of debt that would otherwise take years to clear. But it has serious implications for your future and should never be undertaken lightly.

Bankruptcy advice at a glance

Benefits of bankruptcy Things to consider
It can be one of the quickest ways to give yourself a fresh start. If you have any assets, like a house or car, these may be included in your bankruptcy.
All your unsecured debts are written off. It may have implications for your job – for instance you will not be able to act as a company director.
You will receive no further contact from your creditors. You may find it difficult to take out credit, as bankruptcy will remain on your credit file for six years.

More about bankruptcy

Is bankruptcy suitable for me?

Bankruptcy (like an IVA) is a form of insolvency, so your unsecured debts need to be greater than your assets, such as property or vehicles, for it to be considered. Unsecured debts include things like credit card debt, personal loans and store cards.

How does bankruptcy work?

If you make yourself bankrupt your creditors write off your unsecured debts. This allows you to make a fresh start. In the UK, personal bankruptcy normally lasts for a year. You can’t borrow any further money during this period and have to declare any changes in your circumstances to the Official Receiver. You may be asked to sell valuable assets but you’re able to keep the things you need for day-to-day living.

How much are bankruptcy fees?

Bankruptcy fees vary throughout the UK. In England and Wales bankruptcy fees total £700. You pay a £175 fee to the court and £525 to the Official Receiver. If you have a low income or receive benefits you may be exempt from the court fee, allowing you to go bankrupt for £525. For more details of varying UK charges see bankruptcy fees.

What next? Applying for bankruptcy.

  1. The first step is to see if bankruptcy is the right debt solution for you. You can do this online by using our Debt Remedy tool or by speaking to one of our advisors.
  2. If we think that bankruptcy might be right for you then we’ll put you in touch with our specialist bankruptcy team who will support you every step of the way.
  3. Bankruptcy is not the best option for everyone – we may well be able to help you with more appropriate and less severe ways to solve your particular debt problem.

StepChange bankruptcy advice

Get bankruptcy help FREE personal debt advice in 20 mins

Complete our Debt Remedy tool for FREE to see if bankruptcy is right for you

  • Completely anonymous
  • Free and easy to use

Try Debt Remedy

Why choose us?

Bankruptcy is a big step, we'll make sure it's the right solution for you.

  • Tailored advice We tailor our advice to your situation, and you can be confident that if we recommend it, bankruptcy really is your best option.
  • Specialist bankruptcy advisorsOur specialist bankruptcy advisors are available to help you through the process step by step.
 

Contact us

0800 138 1111 Freephone including all mobiles

Try Debt Remedy

Email an advisor

contact

Bankruptcy guide

Read our guide for immediate information on bankruptcy.

Download our bankruptcy guide

Media centre

Through campaigns, research, press releases and social media, we provide leading insight on problem debt.

Careers at StepChange

You’re not just doing a job working for us. You're making a positive difference to people when they need it most.

Accessibility |

Glossary |

Legal |

Privacy & cookies |

Our registered details |

Mobile website |

MoneyAware blog

© StepChange Debt Charity 2012

Helping you become debt free...

"What an amazing service. It is not always easy to call for help on the phone and the advice given to me was very private and very helpful."

StepChange Debt Charity logo
×
old-logo-cccs

StepChange Debt Charity is the new name for the Consumer Credit Counselling Service. Although we look different, our service, and the people behind it, are just the same.

logo-header

Continue to website

We hope you like our new and improved website. If you need free advice, support or solutions to resolve your debt problem, we've made it easier to find. And if you need to speak to someone, we're always here for you.

Find out more about our name change