In UK law, an insolvent individual can file for bankruptcy by paying £175 in fees to the court and £525 to an Official Receiver. If the bankruptcy is approved, the debts are written off and creditors are prohibited from contacting the bankrupt person or taking legal action to recover what they are owed. However, any assets the individual has may be sold off to pay creditors.

The length of term for personal bankruptcy in the UK is usually 12 months. During that time, the bankrupt individual is subject to certain restrictions on obtaining further credit and doing business.

Preventing bankruptcy

There are several other insolvency processes available to UK residents which can prevent bankruptcy, such as an individual voluntary arrangement (IVA) or a debt relief order (DRO).

Personal bankruptcy should not be considered until you have received expert debt advice, which we can provide free of charge and with complete confidentiality.

Get impartial debt counselling online with CCCS Debt Remedy and find the best debt solution for your financial problems.