Who’s it for?

Bankruptcy is a legal procedure for people who cannot pay their debts within a reasonable time. It is a form of insolvency so, to be eligible, your unsecured debts must outweigh your assets, including property and vehicles.

How does it work?

If you make yourself bankrupt, creditors write off your unsecured debts, meaning you have a fresh start. However, you will be subject to certain restrictions during the term of the bankruptcy, which is usually 12 months.

In order to file for personal bankruptcy, you have to pay a fee of £700 (£175 to the court and £525 to the official receiver).

If the bankruptcy is approved, creditors must stop charging interest and are prevented from contacting you or taking legal action to recover the debt.

In some cases, you are asked to make monthly payments towards your debts from your available income. This is known as an income payment agreement, and can last for three years.

Bankruptcy should not be taken lightly as it is a big step and you may have to give up your assets. You should always get expert advice before making the decision to go ahead with it.

How can we help?

We can provide you with free and confidential debt advice and find the best debt solution for your situation. We can advise you more on bankruptcy if you use our online counselling service, CCCS Debt Remedy, and bankruptcy is an option for you.