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.
Bankruptcy works differently if you live in Scotland. Read our page on bankruptcy in Scotland for more information.
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 £705. You pay a £180 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.