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Cost of Bankruptcy in the UK

Updated for 2026

If you are thinking about going bankrupt, one of the first things you will want to know is the cost of bankruptcy. In the UK, the standard application fee is currently £680, paid directly to the Insolvency Service when you apply online. This is the only official fee you need to pay, and it covers everything from the initial assessment to the appointment of an Official Receiver to handle your case.

How Much Does Bankruptcy Cost in 2026?

The cost of bankruptcy has stayed at £680 since the government reduced it in 2016. Before that, the fee was significantly higher at around £700 plus court costs, because applications had to go through a county court. Since 2016, the process moved entirely online through the GOV.UK bankruptcy application service, which simplified things considerably.

The £680 fee is a single payment. There is no deposit, no hidden charges, and no ongoing monthly cost. You pay the fee, submit your application, and the Insolvency Service reviews it. If approved, an Official Receiver is assigned to manage your bankruptcy.

What Does the £680 Fee Cover?

Your bankruptcy application fee covers:

  • The adjudicator reviewing and processing your application
  • The Official Receiver administering your bankruptcy estate
  • Investigation into your financial affairs
  • Communication with your creditors on your behalf
  • The legal discharge of qualifying debts (usually after 12 months)

You do not need to hire a solicitor or pay a debt management company to go bankrupt. The process is designed so individuals can handle it themselves. That said, free advice is available from organisations like StepChange and MoneyHelper if you need guidance before applying.

Can You Pay the Bankruptcy Fee in Instalments?

No. The Insolvency Service requires the full £680 to be paid upfront before your application can be processed. There is no official instalment plan available.

However, there are ways to raise the fee if you cannot afford it in one go. Some people save up over a few months, while others seek help from family members. Certain charities and local councils may offer grants or budgeting loans to help cover the cost. Your local Citizens Advice bureau can point you towards support options in your area.

What if you genuinely cannot afford the fee?

If raising £680 is not realistic for you, bankruptcy may not be the right solution at this point. There are cheaper alternatives to bankruptcy that may suit your situation better, including:

What Happens After You Pay?

Once your £680 payment clears and you submit the online application, the Insolvency Service assigns an adjudicator to review your case. They check your debts, income, and assets to decide whether a bankruptcy order should be made.

This process usually takes around 28 days from submission. If the adjudicator approves your application, a bankruptcy order is made and an Official Receiver takes control of your financial affairs. Most people are discharged from bankruptcy after 12 months, meaning the qualifying debts are written off.

During the bankruptcy period, there are restrictions on what you can do, including borrowing limits and certain employment restrictions. These are worth understanding before you apply.

Is the Cost of Bankruptcy Worth It?

For many people, paying £680 to have thousands of pounds of unmanageable debt written off is well worth the cost. Bankruptcy gives you a clean slate, typically within 12 months, and stops creditor harassment, court action, and bailiff visits.

That said, bankruptcy does come with consequences. It affects your credit file for six years, and your name appears on the Individual Insolvency Register. If you own property, you could lose your home. If you have savings or valuable assets, these may be claimed by the Official Receiver.

Before committing to the cost, speak to a free debt adviser who can assess all your options. Organisations like StepChange, MoneyHelper, and our team can help you work out whether bankruptcy truly is your best path forward.

How to Apply for Bankruptcy

The application is made online through the GOV.UK website. You will need details of all your debts, income, expenses, and assets. The process takes around an hour to complete if you have everything ready.

Steps to apply:

  1. Gather your financial information: debts, creditors, income, expenses, assets
  2. Visit the GOV.UK bankruptcy application page
  3. Create an account and fill in the online form
  4. Pay the £680 fee by debit card
  5. Submit your application and wait for the adjudicator’s decision

If you are unsure whether bankruptcy is the right choice, take a look at our guide to bankruptcy alternatives first.

Disclaimer: This page provides general information about the cost of bankruptcy in the UK. It is not financial advice. Your circumstances are unique, and you should speak to a qualified debt adviser before making any decisions about insolvency.

Not Sure if Bankruptcy is Right for You?

There may be a better option for your situation. Explore the alternatives before making a decision.

View Bankruptcy Alternatives