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Bankruptcy Means Test: Do You Qualify in 2026?

Updated for 2026

If you are struggling with debt, you may have heard about a bankruptcy means test and wondered whether you need to pass one before going bankrupt. The good news is that there is no formal means test for bankruptcy in England and Wales. Unlike some other debt solutions, anyone can apply to go bankrupt regardless of their income level. However, there are still important eligibility criteria and financial considerations you should understand before applying. This guide explains what a bankruptcy means test involves, who can apply, and what alternatives might suit you better.

What Is a Bankruptcy Means Test?

A bankruptcy means test is a term people often search for when trying to work out if they qualify for bankruptcy. In countries like the United States, a formal means test determines whether someone’s income is low enough to file for bankruptcy. In England and Wales, there is no such test.

To apply for bankruptcy in the UK, you need to meet these basic criteria:

You owe at least one debt you cannot pay
You are domiciled in England or Wales (or have lived or carried on business there in the last three years)
You can pay the £680 application fee to the Insolvency Service

There is no minimum or maximum debt threshold for bankruptcy. Whether you owe £1,000 or £100,000, you can apply. The GOV.UK bankruptcy page confirms the process and requirements for applying online through the adjudicator system.

How Bankruptcy Eligibility Works in 2026

While there is no bankruptcy means test as such, the adjudicator who reviews your application will look at your financial situation closely. They will consider:

Your total debts and who you owe money to
Your income and essential living expenses
Any assets you own, including property and vehicles
Whether you have tried other options first

The adjudicator must be satisfied that you cannot pay your debts. If your application is approved, a bankruptcy order is made and an Official Receiver is appointed to manage your case.

The Application Process

Since 2016, all bankruptcy applications in England and Wales are made online. You complete the application on the GOV.UK website, pay the £680 fee (which can be paid in instalments), and submit your financial details. The adjudicator reviews your case, usually within 28 days.

You will need to provide details of your income, outgoings, debts, and assets. Being honest and thorough is essential: providing false or misleading information is a criminal offence.

What Happens After a Bankruptcy Means Test Assessment?

Once your bankruptcy application is approved, several things happen:

Most of your unsecured debts are included in the bankruptcy and eventually written off
The Official Receiver takes control of your assets
Your name appears on the Individual Insolvency Register
Creditors must stop chasing you for payment
Bankruptcy typically lasts 12 months, after which you are discharged

Income Payments

If your income is above what you need for reasonable living expenses, the Official Receiver may set up an Income Payment Agreement (IPA). This means you pay a fixed amount from your income each month for up to three years. The amount is based on your disposable income after essential costs.

Impact on Your Assets

Bankruptcy can affect your property, vehicle, and other valuable possessions. Your home may need to be sold to pay creditors, though the Official Receiver will consider your family’s needs. Essential household items and tools needed for work are usually protected. You can read more about how bankruptcy affects your assets.

Alternatives to Bankruptcy You Should Consider

Before deciding that bankruptcy is your best option, it is worth understanding the alternatives. Each debt solution has different eligibility criteria, and some may be more suitable depending on your circumstances.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors to repay a portion of your debts over five or six years. You need debts of at least £6,000 (typically £10,000 or more) and a regular income. An insolvency practitioner manages the arrangement, and creditors agree to write off any remaining balance at the end.

Debt Relief Order (DRO)

A DRO is designed for people with low income, few assets, and debts under £50,000. You must have a disposable income of less than £75 per month and assets worth less than £2,000. The fee is just £90, making it a much cheaper option than bankruptcy. Debts are frozen for 12 months and then written off if your situation has not improved.

Debt Management Plan (DMP)

A DMP is an informal arrangement where you make reduced monthly payments to your creditors. There is no formal eligibility test, and it does not involve the court. However, creditors are not legally bound to freeze interest or charges, and a DMP can last many years.

County Court Administration Order (CCAO)

A CCAO is available if you have at least one County Court Judgment (CCJ) against you and your total debts are under £5,000. The court sets an affordable monthly payment, and any remaining debt can be written off through a composition order. This is a lesser-known option worth exploring. Read our dedicated CCAO guide for full details.

Bankruptcy Means Test: Key Questions Answered

Do I need to pass a means test to go bankrupt?

No. There is no formal bankruptcy means test in England and Wales. You do not need to prove your income is below a certain level. The key requirement is that you cannot pay your debts as they fall due.

Is there a minimum debt to go bankrupt?

There is no minimum debt level for applying for your own bankruptcy. However, if a creditor wants to make you bankrupt (a creditor’s petition), the debt must be at least £5,000. You can learn more about the bankruptcy petition process.

How much does it cost to go bankrupt?

The current fee for a bankruptcy application is £680. This can be paid in instalments. For a full breakdown, see our guide on the cost of bankruptcy.

Will bankruptcy affect my credit rating?

Yes. Bankruptcy stays on your credit file for six years from the date of the bankruptcy order. During this time, it will be harder to obtain credit, mortgages, or certain financial products.

Can I go bankrupt if I own a house?

Yes, but your property may be at risk. The Official Receiver or trustee can sell your home to repay creditors, though they must consider the needs of your family. See our guide on bankruptcy and your property for more details.

Getting Free Bankruptcy Advice

Before making any decision about bankruptcy, it is important to get proper advice. Several organisations offer free, confidential help:

MoneyHelper: free debt advice from the Money and Pensions Service
StepChange: a leading UK debt charity offering free online and telephone advice
Citizens Advice: free local and online advice on debt and bankruptcy

You can also explore our bankruptcy guides section for detailed information on every aspect of the process, or visit our alternatives to bankruptcy page if you are not sure bankruptcy is the right path.

Important: The information on this page is for general guidance only and does not constitute financial or legal advice. Bankruptcy rules differ in Scotland and Northern Ireland. Every person’s financial situation is unique, and you should seek professional advice before making any decisions about debt. How To Go Bankrupt is not authorised to provide regulated financial advice.

Not Sure if Bankruptcy Is Right for You?

Speak to one of our friendly advisors for free, confidential guidance on your options. We can help you understand whether bankruptcy, an IVA, a DRO, or another solution fits your situation best.

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