Bankruptcy is one way of dealing with debts you cannot pay. Becoming bankrupt is a very difficult decision and it should only be taken as a last resort.
Bankruptcy is a formal insolvency route for individuals with serious debts that they cannot pay. Bankruptcy is often the last resort and is usually applied when no meaningful alternative can be offered to creditors. Bankruptcy is a court driven process.
Once you are made bankrupt you have a duty to provide information to the official receiver and the trustee, and attend their office as and when required.
Disadvantages of bankruptcy
Advantages of bankruptcy
Is bankruptcy right for me?
As long as you live in the UK and have more than £5,000 of UK debt, you can declare yourself bankrupt. You will have to appear in court in person so that you can present your bankruptcy application documents.
In England and Wales:
- the bankrupty deposit is £550 and
- the adjudicator fee is £130
In Northern Ireland:
- the court fee is £115*,
- the bankruptcy deposit is £525, and
- a solicitor’s fee, which is normally £7
*Depending on your circumstances the court may waive this fee.
Applying for bankruptcy
Applying for bankruptcy is now an online process. You can access this service here.