Personal bankruptcy is a form of insolvency. You are insolvent if your debts outweigh your unsecured assets, including property and cars.

Bankruptcy is not the best solution for everyone and you must seek expert debt counselling if you are considering going bankrupt. We can advise you on the best debt solution for your particular circumstances.

How to apply for bankruptcy

You can only be made bankrupt through the county court. You will need to petition the court by submitting your bankruptcy forms along with fees of £175 to the court and £525 to the official receiver.

If the court agrees to your bankruptcy, your debts will be written off and creditors are not allowed to contact you or take legal action to recover what they are owed. However, your assets may have to be sold off to pay your creditors. Assets can include a property with equity or cars. Everyday household living items are normally not counted as assets.

Free debt advice

Before you consider filing for bankruptcy or any other action to deal with your financial troubles, you should seek professional debt advice.

You can get free, impartial debt counselling online with CCCS Debt Remedy. We can assess your finances and recommend the best debt solution according to your circumstances.