Updated for 2026

Free Bankruptcy Information for England and Wales

Bankruptcy is a formal insolvency process that writes off most of your debts, giving you a fresh financial start. It applies to individuals in England and Wales (Scotland has a separate process called sequestration).

Who can apply?

Anyone who cannot pay their debts can apply for their own bankruptcy. There is no minimum debt level, though the £680 fee means it rarely makes sense for very small amounts. Your creditors can also petition to make you bankrupt if you owe them at least £5,000.

How to apply

You apply online through the GOV.UK bankruptcy service. The process is handled by an adjudicator, not a court. You will need to provide details of your income, outgoings, assets, and debts. Once your application is accepted, the Official Receiver is appointed to manage your case.

What happens to your assets?

The Official Receiver will look at what you own. Essential household items and tools needed for work are usually kept. However, valuable assets such as property, vehicles worth more than a basic amount, and savings may be used to pay creditors. Read our guides on bankruptcy and your assets and bankruptcy and your property for more detail.

How long does it last?

Bankruptcy typically lasts 12 months. After that, you are discharged and most debts are written off. Some debts are not included, such as student loans, child maintenance, and court fines. See our guide on debts not written off by bankruptcy.

If you have surplus income, you may be asked to make payments from income for up to three years through an Income Payments Agreement.

How it affects your credit

Bankruptcy stays on your credit file for six years from the date of the order. During that time, getting credit, a mortgage, or certain financial products will be harder. Your name also appears on the Individual Insolvency Register, which is public.

There may also be bankruptcy restriction orders if you have acted dishonestly or irresponsibly.

Alternatives to bankruptcy

Bankruptcy is not your only option. Depending on your circumstances, one of these may be more suitable:

• Individual Voluntary Arrangement (IVA): a formal agreement to repay part of your debts over five or six years
• Debt Relief Order (DRO): for debts under £50,000 with few assets and low income, costing just £90
• Debt Management Plan (DMP): an informal arrangement to repay debts at a reduced rate
• County Court Administration Order (CCAO): a court-managed repayment plan for debts under £5,000

Our alternatives to bankruptcy page explains each option in detail.

Important: The information on this page is for general guidance only and does not constitute financial or legal advice. Your situation is unique, so consider speaking to a qualified debt adviser before making any decisions. Free help is available from StepChange (0800 138 1111) and Citizens Advice.

Before applying for bankruptcy, think carefully about how it will affect your life. Here are the key things to consider:

1. Your assets are at risk. The Official Receiver can sell your home, car, and other valuable belongings to repay creditors. If you own property, your share may need to be realised within three years of the bankruptcy order. Read our property guide for more on this.

2. It costs £680 upfront. The bankruptcy application fee must be paid when you apply online. If you cannot afford this, a Debt Relief Order at £90 might be a better starting point.

3. Your credit file takes a hit. Bankruptcy remains on your credit report for six years. During that period, you will find it much harder to borrow, get a mortgage, or open certain bank accounts.

4. It is a public record. Your name will appear on the Individual Insolvency Register. This can affect employment in some sectors, particularly finance, law, and public office.

5. Some debts survive bankruptcy. Student loans, child maintenance, court fines, and debts obtained through fraud are not written off. Make sure you know which of your debts would actually be cleared.

6. There may be a better option. An IVA, DRO, or DMP could resolve your debts with less impact on your life. Free advice from StepChange or Citizens Advice can help you compare.

This is general information only, not financial advice. Speak to a qualified debt adviser to understand the best route for your specific circumstances.