After you’ve been declared bankrupt, your creditors will write off your unsecured debts. This allows you to make a fresh start. Bankruptcy usually lasts for 12 months and you’ll have many financial restrictions during this period. When your bankruptcy ends, you’ll be ‘discharged’ from it.
If you go bankrupt you may find it difficult to take out any further credit, as bankruptcy will remain on your credit file for six years.
How do I go bankrupt?
You apply for bankruptcy by submitting an application to the Insolvency Service in England and Wales, the Accountant in Bankruptcy in Scotland or the High Court in Northern Ireland.