Bankruptcy

Overwhelmed By Debt? Bankruptcy Could Help You Make a Fresh Start

If you cannot realistically repay your debts, bankruptcy may help you write off qualifying debt and stop creditor pressure.

6

years on credit file

1

year term

£680

fees for Bankruptcy

What is Bankruptcy?

Bankruptcy is a formal legal process in the UK where individuals who cannot repay unaffordable debts declare themselves insolvent. Their assets are used to repay creditors, and once discharged, remaining debts are usually written off.


Summary

  • Bankruptcy is designed for individuals who cannot repay their debts as they’re due, offering legal debt relief
  • It's a formal procedure available in England and Wales. In Scotland, it’s called sequestration
  • Qualifying debts like loans and credit cards can be included in the bankruptcy estate
  • Certain debts, such as secured loans and student loans, can't be discharged in bankruptcy
  • While bankruptcy can offer debt relief, it comes with severe restrictions and will impact credit
  • A bankruptcy will appear on a public record


Advantages of a Bankruptcy

✅ Qualifying debts may be written off

✅ Creditors must stop collection activity

✅ Legal protection from included creditors

✅ Usually discharged after 12 months

✅ Can provide a fresh financial start

Disdvantages of a Bankruptcy

❌ Bankruptcy affects your credit file for 6 years

❌ Your details appear on the Individual Insolvency Register

❌ Your home or assets may be affected

❌ Some professions restrict bankrupt individuals

❌ You may need to make payments if you have surplus income

❌ Obtaining credit may become more difficult

Not sure if Bankruptcy is right for you?

We'll explain all available debt solutions and help you understand which options may be suitable for your circumstances

Speak to an advisor today

Get free confidential advice with no obligation and take the first step towards financial freedom

What People Usually Want To Know

  • Will bankruptcy stop creditors?

    Yes. Included creditors must stop collection and enforcement action once bankruptcy is approved.

  • Will I lose my home?

    Possibly. If you own property, it may be affected by bankruptcy.

  • Will bankruptcy affect my credit file?

    Yes. Bankruptcy stays on your credit file for 6 years.

  • Can I keep my car?

    Possibly, if it is considered essential for work or daily living.

  • Will my employer find out?

    Some professions have restrictions relating to bankruptcy.

Alternatives to Bankruptcy

IVA

Combine your debts into one affordable monthly payment with legal protection from creditors.

Debt Relief Order

A free debt solution that can freeze interest and write off qualifying debts.

Debt Management Plan

Make one manageable monthly payment while reducing pressure from creditors and regaining

Breathing Space

Receive temporary protection from interest, fees, and creditor action while you explore your debt options.