Free debt advice: what if I need help with my debts?

Bankruptcy (like an IVA) is a form of insolvency and is normally only suitable if you can’t pay back your debts in a reasonable time.

Bankruptcy shouldn't taken lightly as it's a big step and any assets you own (such as your car or home) may be sold. Bankruptcy will also be registered on your credit history for six years and could affect your job.

In some cases, you're asked to make monthly payments towards your debts from your available income. This is known as an income payment agreement (IPA), and can last for three years.

You should always get free and impartial advice before going ahead with a debt solution. To find out which option is best for your circumstances, we’ll ask you a series of questions during a debt advice session, including:

• How much money you owe and who do you owe money to
• What types of debts you have
• How much you can pay towards your debts
• Whether your circumstances could improve in the future
Ready to find out if bankruptcy is right for you?

Bankruptcy fees vary depending on where you live in the UK.

In England and Wales you pay a total of £680, made up of a £130 fee to the adjudicator and £550 to the official receiver; a total of £680.

In Northern Ireland the total cost is £683; made up of a £151 court fee, £525 bankruptcy deposit and solicitor's fees of £7.

Most debts are included in bankruptcy. When you’re discharged from bankruptcy, these debts are written off.

Some debts aren’t included in bankruptcy, these include child maintenance arrears, criminal fines and TV licence arrears.

Your debts are written off and the restrictions placed on you during your bankruptcy are usually lifted. If your bankruptcy was caused by dishonest or reckless behaviour, the official receiver can extend the bankruptcy restrictions through a bankruptcy restriction undertaking (BRU) or order (BRO). This can last up to 15 years.

The record of your bankruptcy stays on the Insolvency Register (England and Wales) or Bankruptcy Register (Northern Ireland) for a further three months after you’re discharged, or longer if you have a BRU or BRO.

You may still have to make payments towards your bankruptcy, the official receiver will decide if you have to do so.

When you go bankrupt almost all of your debts are written off, allowing you to make a fresh start. However declaring yourself bankrupt is a big step that involves fees and can impact many areas of your life, such as your job or home.

In the UK, personal bankruptcy normally lasts for a year. During this time you can’t borrow more than £500 without letting the creditor know you’re bankrupt.

You must also declare any changes in your circumstances to the official receiver.

You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living. Find out more about how bankruptcy affects you.