With bankruptcy, you could have:

What solutions are available?
Complete the form and our friendly advisor will call you back to discuss the best way forward.


An end to your worries about debt

Bankruptcy lets you repay as much as you realistically can and write off the unsecured debts you can't afford. It's over more quickly than some debt solutions too - you'll normally be discharged after one year. You might have to make affordable repayments towards your debt for up to three years (four years for Scottish bankruptcy).

However, bankruptcy's a serious step with long-lasting consequences - and it could cost you your home, if you own it.

Protection against lender demands

Once your bankruptcy has been agreed, your lenders can't take any further action against you.

Makes sure you can afford your other living costs

During bankruptcy, your bills and other costs will be treated as priority. Any payments you make towards your debts will fit around your living costs, to always make sure they're covered.

How bankruptcy works

If Bankruptcy is the right solution for you, you will need to complete an online application called a petition. We can help you prepare this. This petition is then submitted to an adjudicator at the Insolvency Service. Once received, the Insolvency Service will consider your application. If it’s accepted, a bankruptcy order will be made and your lenders will be made aware. They then can’t contact you for payments for the next 12 months.

Although you can do this alone, a lot of people find this daunting or confusing. If you're unsure about anything, call us on 0161 669 8925 - we'll be happy to help.

If your bankruptcy is agreed, interest and charges on your unsecured debts will be frozen, and you will hand over all rights to your personal belongings (assets) to a 'Trustee'. It's the Trustee's job to oversee the sale of your assets and ensure that a fair amount of the money raised goes to each of your lenders.

Your bankruptcy will come to an end when you are 'discharged' - normally after one year. At this point, your unaffordable unsecured debts will be written off.

If you can afford to do so, you may have to make regular payments to your lenders for up to three years (four years for Scottish bankruptcy) after your bankruptcy has been awarded.

Is it right for me?

There is a common view that bankruptcy is a 'last resort' for dealing with debts. However, there are some cases in which it can be the best option.

Bankruptcy has a few advantages over other debt solutions. For example, it's normally over within a year, as opposed to five on a typical IVA. And if you can't afford to make regular monthly payments towards your debts, you won't have to.

But you will only qualify for bankruptcy if you really can't afford to repay your debts in full within a reasonable period of time.

Records of your bankruptcy will appear on the Individual Insolvency Register until three months after your bankruptcy has ended.

If you're a homeowner, your home will normally be sold to help cover what you owe. If you're not a homeowner, this won't be an issue.

Final points

Bankruptcy could offer a way out of problems with unmanageable debt, but be aware that your credit rating will be affected for the medium to long term.

Depending on your circumstances, there may be other restrictions; for example, you can't borrow more than £500 without telling the lender you have been made bankrupt. You also can't hold down certian jobs, such as director of a company.

Need expert help with your debts? Complete our form to request a callbackRequest a callback
  • 0161 669 8925
  • 0161 669 8925

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About us

We've been helping people get out of debt for almost 20 years. Read more about what we do and the charities we support.

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Fees & key info

Read more about the fees involved with each of the solutions we provide.

Download the Insolvency Service guide to dealing with creditors.

Read here for information about our Complaints Procedure and referring a complaint to the Financial Ombudsman Service.

Subject to eligibility and acceptance, alternative solutions may be offered. Fees payable. Your ability to obtain credit will be affected in the short to medium term and could be affected in the long term.
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