Bankruptcy

Bankruptcy will usually discharge you from your ordinary unsecured debts within 12 months, subject to certain exceptions such as Student Loans, Criminal Fines, Family Orders and debts obtained by Fraud. Whilst the Bankruptcy application fees cost  £680, depending on your circumstances your assets may be sold (such as your property if you own it) and/or you may be required to pay into the Bankruptcy fund for up to 3 years to cover all other costs of the Bankruptcy and make a possible return to your creditors. If you do not co-operate the Official Receiver or Trustee of your bankruptcy, the automatic 12-month discharge period can also be extended until all matters have been addressed.

Bankruptcy may be suitable for you if you are insolvent - meaning that you cannot pay your creditors when your bills are due or that your total debts are greater than the value of your assets. Bankruptcy can have serious implications on your personal, financial and professional life and so should be considered carefully. Bankruptcy is available for residents of England, Wales and Northern Ireland. For residents of Scotland, sequestration is a similar solution.

Bankruptcy is a legally binding process and once the Bankruptcy Order has been made, creditors can not take any further action against you to recover your debts without the leave/permission of the court, which they will only do in exceptional circumstances.

Bankruptcy will write off the entirety of your debts with only a few exclusions such as court fines, loans from the Student Loans Company and child maintenance arrears.