A long-established way to deal with serious debt — most unsecured debts are written off, usually within 12 months.
Bankruptcy is a solution for people facing serious debt problems with little or no disposable income to repay creditors. It can give a fresh start where other solutions aren’t suitable. This page covers bankruptcy in England and Wales; Scotland has a different process called sequestration. My Debt Plan Ltd does not provide bankruptcy — you apply directly to the Insolvency Service.
Most, if not all, of your unsecured debts are written off, leaving only debts that can’t be included (such as secured debts, student loans and some benefit overpayments). Bill and debt collectors must stop chasing you for debts included in the bankruptcy. Most people’s jobs aren’t affected, though some roles can be — check your employment contract if you’re unsure.
See which debt solutions you could qualify for. Checking your options won’t affect your credit score.
You apply online via the Insolvency Service on GOV.UK, including details of your debts, income and expenditure. There’s a fee of £680, which can be paid in instalments. An adjudicator considers your application and, if appropriate, makes the bankruptcy order. You’re usually discharged within 12 months.
There are restrictions: you can’t act as a company director or borrow more than £500 without disclosing your bankruptcy, and if you have equity in your home it may be sold. Your credit rating will be seriously affected for six years.
Talk to My Debt Plan about your options. Free, impartial advice is also available from MoneyHelper.
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.
