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Declaring myself bankrupt in the UK - guide to personal bankruptcy and debt solutions

Declaring Myself Bankrupt: What You Need to Know in 2026

If you are thinking about declaring myself bankrupt, you are not alone. Thousands of people across England and Wales go through the bankruptcy process each year when their debts become unmanageable. This guide explains everything you need to know about personal bankruptcy in 2026, from the application process and costs involved, through to what happens afterwards and what alternatives might be available to you.

What Does Declaring Myself Bankrupt Actually Mean?

Bankruptcy is a formal legal process that provides relief from overwhelming debt. When you declare yourself bankrupt, an Official Receiver is appointed to manage your financial affairs. Most of your debts are written off, typically after 12 months, giving you a genuine fresh start.

In England and Wales, bankruptcy is handled through the Insolvency Service, and the process is now entirely online. You apply through the government’s adjudicator system rather than going to court, which makes the whole thing more straightforward than it used to be.

It is worth understanding that bankruptcy is not a punishment. It is a legal mechanism designed to help people who genuinely cannot repay what they owe. The process treats you fairly, provided you cooperate fully with the Official Receiver.

How Much Does It Cost to Declare Myself Bankrupt?

The current fee for a bankruptcy application in 2026 is £680. This is a single payment made when you submit your online application to the Insolvency Service. There are no court fees on top of this.

If you cannot afford the full amount in one go, you can save towards it. Some debt charities, such as StepChange, may be able to help you budget for the fee. There is no instalment option from the government itself, so you need the full £680 ready before applying.

For many people, £680 can feel like a lot when you are already struggling with debt. However, when weighed against the total amount of debt that gets written off, it often represents excellent value. People routinely have tens of thousands of pounds in debt cleared through bankruptcy.

The Bankruptcy Application Process

The online application process is handled through the gov.uk bankruptcy application portal. Here is what to expect:

You will need to provide details of all your debts, your income and expenditure, and your assets. The application asks for specifics about your bank accounts, any property you own, vehicles, and other items of value. Be thorough and honest, as incomplete applications can cause delays.

Once submitted, an adjudicator reviews your application. This usually takes a few days. If approved, a bankruptcy order is made and the Official Receiver takes over your case. You do not need to attend court.

The Official Receiver will contact you, usually within a few working days, to arrange an interview. This can be conducted by telephone. They will go through your finances in detail and explain your obligations during the bankruptcy period.

What Happens to My Debts When I Go Bankrupt?

Most unsecured debts are included in your bankruptcy and written off after the discharge period. This typically covers:

  • Credit cards and store cards
  • Personal loans and overdrafts
  • Catalogue debts
  • Council tax arrears
  • Utility bill arrears
  • Money owed to friends or family

However, some debts are not covered by bankruptcy. Student loans, child maintenance arrears, court fines, and debts obtained through fraud will survive the process. You should check which of your debts would actually be cleared before applying. Our guide to debts not written off by bankruptcy covers this in detail.

Declaring Myself Bankrupt: Impact on Property and Assets

Your assets are assessed when you declare yourself bankrupt. The Official Receiver will look at everything you own to determine what can be used to repay creditors. However, the process is not about leaving you with nothing.

Essential household items, tools needed for work, and a reasonable vehicle (typically worth under £1,000) are usually exempt. If you own a home, the equity in your property may need to be realised, but your interest is protected for up to three years. After that, if the trustee has not dealt with your property interest, it reverts back to you.

Read our detailed guide on bankruptcy and your property for the full picture on how your home is treated during bankruptcy.

How Long Does Bankruptcy Last?

A standard bankruptcy in England and Wales lasts 12 months from the date of the bankruptcy order. After this period, you are automatically discharged, meaning you are freed from the restrictions that apply during the bankruptcy.

Your name will appear on the Individual Insolvency Register during this time, and the bankruptcy will stay on your credit file for six years from the date of the order.

In some cases, the Official Receiver may apply for a Bankruptcy Restrictions Order (BRO) if you have been dishonest or reckless with your finances. This can extend certain restrictions for between 2 and 15 years, though it does not prevent your discharge from the bankruptcy itself. More detail is available in our guide to Bankruptcy Restriction Orders.

Income Payments During Bankruptcy

If your income exceeds your reasonable living expenses, you may be asked to make an Income Payment Agreement (IPA) or be subject to an Income Payment Order (IPO). These payments last for three years and are calculated based on your surplus income.

The Official Receiver uses standard guidelines to determine what counts as reasonable expenditure. You will not be expected to live in hardship. The aim is to recover something for creditors while ensuring you can maintain a reasonable standard of living. Our page on payments from income during bankruptcy explains how this works.

Alternatives to Declaring Myself Bankrupt

Bankruptcy is not the only option for dealing with serious debt. Before committing to the process, consider whether one of these alternatives might be more suitable for 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 a fixed period, usually five or six years. You make affordable monthly payments, and any remaining debt is written off at the end. An IVA is managed by a licensed Insolvency Practitioner and can protect your home from being sold.

Debt Relief Order (DRO)

A DRO is available if you owe less than £30,000, have limited assets (under £2,000), and a low disposable income (under £75 per month). It freezes your debts for 12 months and, if your situation has not improved, writes them off entirely. The application fee is just £90.

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. It is flexible and can be set up through a free debt charity, though it does not write off any of your debt.

County Court Administration Order (CCAO)

A CCAO is available if you have at least one County Court Judgment against you and your total debts are under £5,000. You make a single monthly payment to the court, which distributes it to your creditors.

For a full comparison of all options, visit our bankruptcy alternatives page.

Where to Get Free Advice

Before making any decisions about declaring myself bankrupt or pursuing an alternative, get proper advice from a qualified professional. The following organisations offer free, impartial guidance:

Disclaimer

The information on this page is for general guidance only and does not constitute financial advice. Every person’s situation is different, and you should seek professional advice before making any decisions about bankruptcy or debt solutions. How To Go Bankrupt provides free information to help you understand your options, but we are not authorised to give regulated financial advice.

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