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What is bankruptcy

Can a creditor make me bankrupt?

i England, Wales and Northern Ireland

The people you owe could make you bankrupt. This is usually a last resort if you cannot pay your debts.

When the people you owe apply for your bankruptcy, it affects you the same way as if you did it yourself. But, they pay the fees instead of you.

Bankruptcy applications are:


  • Mostly made by people in debt who want to go bankrupt
  • Not often made by lenders because they have to pay large fees up front

Many lenders do not do this unless they are sure:


  • They can get their money back
  • You have enough assets or income for bankruptcy to be worth it
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How does a creditor apply for bankruptcy?

In England, Wales or Northern Ireland

The people you owe can make you bankrupt if you owe them more than £5,000.

If you owe two or more people, they can 'club together' if the amounts you owe are under the £5,000 limit. This is rare.

Let's say you have two debts of £3,000. The people you owe can apply for your bankruptcy together, making your total debt over £5,000.

There are four ways the people you owe can petition for your bankruptcy:

The process varies depending on which country you live in.


  1. After you get a statutory demand (England, Wales and Northern Ireland)

This letter gives you 21 days to:


  • Pay the debt or
  • Come to a payment agreement

The people you owe can apply or ‘petition’ for your bankruptcy if you do not.

This is the most common way the people you owe apply for your bankruptcy. Contact us quickly if you get a statutory demand.


  1. Your individual voluntary arrangement (IVA) failed because you missed payments (England, Wales and Northern Ireland)

The insolvency practitioner dealing with your IVA can petition for your bankruptcy if the people you owe agree to it.

This is rare.


  1. After a County Court judgment (CCJ) (England and Wales only)

Enforcement agents come to your home after a CCJ.

They may apply for your bankruptcy if they find you do not have enough to sell to pay off the debt

This is rare.


  1. A certificate of unenforceability for the debt (Northern Ireland only)

The Enforcement of Judgments Office (EJO) grants a certificate of unenforceability.

The people you owe petition for your bankruptcy after this.

This is rare.

In Scotland

The people you owe can make you bankrupt in Scotland if you owe them more than £3,000.

If you owe two or more people, they can 'club together' if the amounts you owe are under the £5,000 limit. This is rare.

Let's say you have two debts of £2,000. The people you owe can apply for your bankruptcy together, making your total debt over £3,000.

The people you owe can only petition for your bankruptcy if they can prove your ‘apparent insolvency’.

To do this they will send you one of the following documents:


  • A charge for payment giving you 14 days to pay the debt, or
  • A statutory demand giving you 21 days to pay the debt

You get a ‘warrant to cite’ with a date for a court hearing if you do not pay in this time.

You can also be made bankrupt if you set up a protected trust deed that fails because you missed payments.

Find out more about debt advice in Scotland.

Did you get a bankruptcy hearing date?

Explain why you do not think you should be made bankrupt at the hearing.

Explain to the court:


  • The history of the debt
  • What you can pay
    • Bring a copy of your budget, showing your income and spending
    • Bring information of other debts you owe
    • This will give the court a better idea of your situation
  • Whether the people you owe have acted fairly

Go to the hearing even if you do not plan to oppose the bankruptcy.

Contact us straight away if you get a date for a bankruptcy hearing.

After the bankruptcy hearing

Your case is passed to a ‘trustee’ when you are made bankrupt.


  • In England, Wales or Northern Ireland, this is an 'official receiver'
  • In Scotland, it is the Accountant in Bankruptcy

The trustee’s staff will contact you and ask for details of your:


  • Income
  • Living costs
  • Assets
  • Debts

The trustee also explains what happens for the rest of your bankruptcy.


  • You must cooperate with the trustee
  • You might face further court action if you do not

Help and advice

Contact us right away if you get any bankruptcy documents.

Use our online debt advice tool to find the right help.