Bankruptcy is only available for people who live in England, Wales or Northern Ireland.
If you live in Scotland, the alternative to Bankruptcy is Sequestration.
Bankruptcy is only considered as a last resort, and we will review all other debt solutions with you before bankruptcy is advised.
Benefits
- Your creditors can no longer pursue you or take action against you to recover what you owe
- You will no longer have to make further payments to your creditors, but will have to pay any surplus income over to your Trustee
- All of your debt will be written off, providing you with a fresh start
- You will be able to keep income from benefits
- After 1 year, you can expect to be discharged from personal bankruptcy
Things you need to know
- Any valuable assets, including endowment policies, will usually have to be sold
- Bankruptcy may restrict your ability to obtain credit in the future and your credit rating can be affected for many years after the annulment
- As an undischarged bankrupt, you are not permitted to start up or be involved in the day-to-day management of a limited company
- You are not allowed to act as a member of parliament, and there are various other restrictions, for example, acting as a member of any local council or school boards, etc.
- You may not practice as a chartered accountant, a lawyer or act as a Justice of the Peace
- In any hire purchase agreements that you may have, there could be a clause which terminates the agreement automatically if you become bankrupt
- There will usually be a fee to pay with your application
- Your bankruptcy will be advertised in a local newspaper
For more information, read our questions and answers