Bankruptcy — a fresh start when other options aren’t viable
A formal legal process that writes off most unsecured debts and provides legal protection from creditors. Typically discharged after just 12 months.
- 12 months
- £680
- Most
- Legal
Why people choose bankruptcy
Most debts written off
Once discharged, most unsecured debts included in your bankruptcy are written off completely. Credit cards, loans, overdrafts and more.
Discharged after 12 months
Bankruptcy typically lasts just 12 months. After discharge, most restrictions are lifted and you can start to rebuild.
Legal protection from creditors
Once a bankruptcy order is made, creditors must stop all contact and enforcement action. You are legally protected.
A genuine fresh start
Bankruptcy is designed to give you a complete clean slate. It is the most comprehensive way to deal with unmanageable debt.
Structured, clear process
The process is managed by an Official Receiver. You know exactly what to expect at every stage, with no surprises.
No-obligation advice
No pressure and no obligation. We assess your situation and explain whether bankruptcy is the right option for you.
How bankruptcy works
No-obligation assessment
A qualified adviser at an authorised partner reviews your income, outgoings and debts. They help you understand whether bankruptcy is the right option — with no pressure and no obligation.
Application submitted
You apply online to the Insolvency Service and pay the £680 application fee. Your partner adviser can guide you through the process to make sure everything is completed correctly.
Bankruptcy order made
An Official Receiver is appointed to manage your case. Your creditors must stop all contact and enforcement action. You are now legally protected from the debts included in your bankruptcy.
Discharge
After 12 months, most restrictions end and any remaining unsecured debts included in the bankruptcy are written off entirely. You get a genuine fresh start.
Is this right for you?
You’re likely a fit if…
- You cannot afford to repay your debts
- Other solutions such as an IVA or DMP are not viable
- You need a complete fresh start from unmanageable debt
- You are facing legal action from creditors
- Your debts are causing serious financial hardship
It may not be right if…
- You own significant assets you want to keep, such as your home
- You are a company director and need to continue in that role
- You work in certain professions such as solicitor or accountant
- You can afford monthly payments towards your debts
- Another solution like an IVA would work for your circumstances
Questions, answered honestly
Will I lose my home?
It is possible. If you own your home, it may need to be sold to repay your creditors. If your property has equity, the Official Receiver or a trustee may seek to realise that value. However, the process takes time and your adviser will explain exactly what to expect based on your specific circumstances.
How long does bankruptcy last?
You are typically discharged from bankruptcy after 12 months. Once discharged, most of the restrictions that apply during bankruptcy are lifted and any remaining unsecured debts included in the order are written off. Some obligations, such as an Income Payments Agreement, can continue for up to three years.
Can I still work?
Yes, for most jobs bankruptcy will not affect your employment. However, there are restrictions for certain professions — for example, solicitors, accountants, and some roles in financial services. You also cannot act as a company director during bankruptcy without permission from the court. Your partner adviser will help you understand whether any restrictions apply to you.
What debts aren't included in bankruptcy?
Certain debts cannot be written off through bankruptcy. These include student loans, court fines, child maintenance arrears, and debts arising from fraud. Secured debts such as mortgages and car finance are also not included. However, most forms of unsecured debt — including credit cards, personal loans, overdrafts, and catalogue debt — can be included.
How much does bankruptcy cost?
The application fee is £680, which is paid directly to the Insolvency Service when you submit your online application. Unlike some other debt solutions, there are no ongoing adviser fees. If you cannot afford the fee upfront, your adviser can discuss options for saving towards it or alternative solutions that may be more suitable.
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