Becoming bankrupt in England and Wales can help you rid yourself of debt which would otherwise take many years to clear.
How does bankruptcy work?
Bankruptcy is a form of insolvency, so your unsecured debts need to outweigh your assets, such as property or vehicles, for it to be considered. Unsecured debts include things like credit card debt, personal loans and store cards.
If you make yourself bankrupt, your creditors write off your unsecured debts. This allows you to have a fresh start.
How much does it cost to go bankrupt?
In England and Wales bankruptcy fees total £700. You pay a £175 fee to the court and £525 to the official receiver. If you have a low income or receive benefits, you may be exempt from the court fee allowing you to go bankrupt for £525.
How would bankruptcy affect me?
UK bankruptcy normally lasts for a year. You cannot borrow any further money and would have to declare any changes within your circumstances to the official receiver during this year. You may be asked to sell valuable assets, but you are able to keep most of the things you need for day-to-day living.
Is bankruptcy suitable for me?
Making yourself bankrupt is a big step to take and requires expert debt advice. If you are considering making yourself bankrupt, you can use our online debt counselling service, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.
If it is an option for you and you decide to go ahead, we can also offer you extra support through our bankruptcy support team. They can answer any questions you have about bankruptcy.
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