If you have a debt problem, one of your options for sorting it out might be bankruptcy. Bankruptcy is an insolvency option for those in severe financial difficulties who cannot repay their debts in a realistic period of time. Bankruptcy is a solution only available in England, Wales & Northern Ireland

As well as applying for bankruptcy yourself, someone else you owe money to (a creditor) can apply to make you bankrupt, even if you don’t want them to.

Remember, Bankruptcy might not be your only option and it might not be the most appropriate debt solution for your needs. Our trained advisors can assess your financial situation and help you find the most suitable option for you.

Listed below are some of the Main Advantages & Disadvantages of Bankruptcy

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  • You can be discharged after 12 months

  • Once your bankruptcy is discharged, all included debts are written off

  • You can pay the fee online in installments and your bankruptcy application will begin once your fee has been paid in full

  • Bankruptcy will prevent your creditors from taking or continuing with any legal action

  • All interest and charges will be frozen


  • There are certain debts that cannot be included in a bankruptcy, such as student loans, CSA arrears and court fines

  • Bankruptcy costs £680 per person

  • Bankruptcy will adversely affect your credit rating and, your ability to gain credit will be limited and the bankruptcy will remain on your credit file for 6 years

  • Once you are declared bankrupt an Official Receiver or Trustee will take control of your estate which could result in any assets being sold

  • If you can afford to make a payment, you will be asked to do so for up to 3 years