Personal bankruptcy is a legal procedure for people whose circumstances are unlikely to change and who have no hope of paying off their debts within a reasonable time.
You have to be insolvent to file for bankruptcy, in other words, your unsecured debts have to outweigh your assets, including property and cars.When you make yourself bankrupt, your unsecured debts are written off, allowing you to make a a fresh start. But personal bankruptcy rules mean you will face certain restrictions.
Personal bankruptcy fees
In order to file for personal bankruptcy in the UK, a fee of £175 is payable to the court, and an additional fee of £525 is payable to the Official Receiver.
Under the terms of the bankruptcy, creditors stop charging interest and cannot contact you or take legal action to recover the debt.
Personal bankruptcy advice
Personal bankruptcy is a big step to take and you should not make any move towards making yourself bankrupt before getting expert debt advice.
We can provide free, confidential debt counselling and identify the best debt solution for your situation. Use our online counselling service CCCS Debt Remedy and find out whether personal bankruptcy is an option for you.