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Apply for bankruptcy in the UK - online application guide

Apply for Bankruptcy in the UK: Your 2026 Guide

Updated for 2026

If you are struggling with unmanageable debt, you may be considering whether to apply for bankruptcy. Bankruptcy is a legal process that can write off most of your unsecured debts, giving you a fresh financial start. This guide explains how to apply for bankruptcy in the UK in 2026, what the process involves, what it costs, and what alternatives you should consider before making your decision.

How to Apply for Bankruptcy in England and Wales

Since 2016, the only way to apply for bankruptcy in England and Wales is through the online application on GOV.UK. You can no longer apply at a court in person. The process is handled by the Insolvency Service, and the entire application is completed digitally.

To begin your application, you will need to create an account on the GOV.UK bankruptcy service. You will then be asked to provide detailed information about your finances, including:

  • A full list of everyone you owe money to (creditors), along with the amounts owed
  • Details of your income, including wages, benefits and any other regular payments
  • A breakdown of your monthly outgoings, such as rent, utilities, food and transport
  • Information about any assets you own, including property, vehicles, savings and valuables
  • Details of any previous insolvency proceedings

It is important to be completely honest and accurate when completing your application. Providing false or misleading information is a criminal offence and could result in a bankruptcy restriction order.

What Does It Cost to Apply for Bankruptcy?

The current fee to apply for bankruptcy in England and Wales is \u00a3680. This is a single payment that covers the entire application, and you must pay it before your application can be processed. The fee can be paid in instalments if you cannot afford the full amount upfront, but the application will not proceed until the total has been paid.

If you are on a very low income, there is no fee waiver or exemption available for bankruptcy. However, some charities and local councils may offer assistance. For a detailed breakdown, see our guide to the cost of bankruptcy in the UK.

If the \u00a3680 fee is a barrier, it is worth exploring whether a Debt Relief Order (DRO) might be more suitable. A DRO costs just \u00a390 and is designed for people with debts under \u00a350,000, assets under \u00a32,000 and a low disposable income.

What Happens After You Apply for Bankruptcy?

Once you have submitted your application and paid the fee, the Insolvency Service will review your case. In most cases, a decision is made within 28 days. If your application is approved, a bankruptcy order is made and an Official Receiver is appointed to manage your case.

The Official Receiver will contact you to arrange an interview, which is usually conducted by telephone. During this interview, they will go through your financial situation in detail and explain what happens next. They will also assess whether you need to make regular payments from your income towards your debts through an Income Payment Agreement (IPA).

Bankruptcy normally lasts for 12 months, after which you are automatically discharged. This means you are released from most of the debts included in the bankruptcy. However, some debts are not written off by bankruptcy, including student loans, court fines and child maintenance arrears.

What Are the Consequences of Applying for Bankruptcy?

Bankruptcy is a serious step and there are important consequences you should understand before you apply. These include:

  • Your bankruptcy will be recorded on the Individual Insolvency Register, which is a public record
  • Your credit rating will be significantly affected for at least six years
  • You may be required to sell assets, including your share in any property you own
  • Your vehicle may be at risk if it is worth more than a reasonable amount needed for work or essential transport
  • You will face certain restrictions, such as being unable to act as a company director or obtain credit above \u00a3500 without disclosing your bankruptcy
  • Your pension may be affected in some circumstances, although most pension rights are protected

For many people, despite these consequences, bankruptcy provides genuine relief from overwhelming debt and the chance to rebuild their finances.

Alternatives to Applying for Bankruptcy

Before you apply for bankruptcy, you should consider whether one of the alternative debt solutions might be more appropriate for your situation. The main alternatives available in England and Wales are:

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors to repay a portion of your debts over a fixed period, usually five or six years. It is managed by a licensed insolvency practitioner and, once agreed, your creditors are legally bound by its terms. An IVA can protect your home and other assets, making it a popular choice for homeowners.

Debt Relief Order (DRO)

A DRO is a simpler, cheaper alternative designed for people with lower levels of debt. To qualify, you must owe less than \u00a350,000, have assets worth less than \u00a32,000 and have a disposable income of \u00a375 or less per month. A DRO lasts for 12 months, after which your debts are written off.

Debt Management Plan (DMP)

A DMP is an informal arrangement where you make reduced monthly payments to your creditors based on what you can afford. DMPs are flexible and can be set up through a debt charity such as StepChange at no cost. However, they are not legally binding and your creditors can still take enforcement action.

County Court Administration Order (CCAO)

A CCAO is a court-supervised repayment plan available if you owe less than \u00a35,000 and have at least one County Court Judgment (CCJ) against you. The court sets a monthly payment based on what you can afford, and creditors must accept the arrangement.

For a full comparison of all your options, visit our bankruptcy alternatives page or read our guide on whether bankruptcy is right for you.

Getting Free Advice Before You Apply

You do not need to face this decision alone. Free, confidential debt advice is available from several organisations:

Speaking to a qualified adviser can help you understand which option is best for your circumstances and ensure you make an informed decision.

Disclaimer: The information on this page is for general guidance only and does not constitute financial or legal advice. Every individual’s circumstances are different. You should seek independent advice from a qualified professional before making any decisions about bankruptcy or other debt solutions.

Ready to Take the Next Step?

If you have questions about applying for bankruptcy or want to discuss your options with a knowledgeable adviser, we are here to help. Request a free callback and we will talk you through everything you need to know.

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