If you have serious debt problems, you might want to find out more about bankruptcy. We can advise you on whether going bankrupt is appropriate for your circumstances, or if there is a better solution for your debt problem.

What is bankruptcy?

Bankruptcy is a form of insolvency. If your unsecured debts outweigh your assets (for example, property or vehicles) then you are insolvent.

If you go bankrupt, your unsecured debts are written off. This gives a fresh start to those in serious debt. However, your assets could be sold off to repay your creditors. You will normally be allowed to keep anything considered essential for your day-to-day living requirements. You may also have to make payments to the official receiver for up to 3 years if you have any income left over after paying for all your household priorities.

Also bear in mind that bankruptcy will seriously affect your credit rating for several years to come.

Bankruptcy fees

To file for bankruptcy you have to pay £175 to the court and £525 to the official receiver. However, the court’s fee is sometimes waived for those on a low income or receiving benefits.

Bankruptcy term

The normal term for bankruptcy is 12 months, during which time you are subject to various restrictions and have to declare any changes to your circumstances to the official receiver.

Debt and bankruptcy advice

Bankruptcy is not a step that should be taken lightly, and there might be options more suitable for your circumstances. You should get some professional debt advice before considering bankruptcy as a debt solution.

Our online debt counselling service, CCCS Debt Remedy, can identify the very best debt solution for your situation and give you step-by-step instructions on helping you resolve your debt situation.