Updated for 2026
Bankruptcy Guides
Clear, practical guidance on every stage of the bankruptcy process in England and Wales, written for people who need real answers, not legal jargon.
Going bankrupt is one of the biggest financial decisions you can make. Whether you are considering it yourself or a creditor has threatened you with a petition, understanding how the process works is essential. These guides break down each stage so you know exactly what to expect, what your rights are, and where to get further help.
What is bankruptcy?
Bankruptcy is a formal insolvency process that writes off most of your unsecured debts. In England and Wales, you apply online through the Insolvency Service on GOV.UK. The application fee is currently £680, paid upfront when you submit your petition. Once a bankruptcy order is made, an Official Receiver takes control of your finances and assets. Most people are discharged (freed from bankruptcy) after 12 months, at which point the majority of debts included in the order are written off.
Bankruptcy is not your only option. If your total debts are under £50,000, you may qualify for a Debt Relief Order (DRO), which is now free to apply for. Other alternatives to bankruptcy include Individual Voluntary Arrangements (IVAs) and Debt Management Plans. Free debt advice services such as StepChange and MoneyHelper can help you work out which route suits your situation.
How to use these guides
Each guide below covers a specific aspect of going bankrupt. You do not need to read them in order, but if you are new to the process, starting with “Considerations and Restrictions” will give you a broad overview before you dig into the details. The guides on bankruptcy petitions and bankruptcy hearings explain the legal steps involved, while the later guides cover practical matters like your bank accounts, income payments, property, car, and pension.
All information is kept up to date for 2026 and reflects current legislation in England and Wales. This is general information only and does not constitute financial or legal advice. If you are unsure about your situation, speak to a qualified debt adviser.
Your bankruptcy guides
Considerations and Restrictions
The key benefits, drawbacks and restrictions you need to weigh up before applying for bankruptcy. Covers employment restrictions, credit impact, and how long bankruptcy stays on your record.
Bankruptcy Petition
The two main routes into bankruptcy: a debtor petition (you apply yourself) and a creditor petition (someone else applies to make you bankrupt). What each involves and how to prepare.
Bankruptcy Hearing
What happens at a bankruptcy hearing when a creditor has petitioned against you. How a district judge decides whether to make a bankruptcy order and what you can do to oppose it.
Official Receiver and Trustee
The roles of the Official Receiver and any appointed Trustee in administering your bankruptcy. What they can ask of you, and what powers they hold over your estate.
Bank Accounts
What happens to your bank account when you are made bankrupt. How existing balances and overdrafts are handled, and your options for maintaining basic banking facilities.
Payments From Income
Whether you will have to make regular payments from your wages or other income during bankruptcy. How the amount is calculated and how long payments typically last.
Debts Not Written Off
Bankruptcy does not clear every debt. Certain obligations, including student loans, court fines and some secured debts, may survive your discharge.
Your Assets
When you go bankrupt, control of your assets passes to the Official Receiver. Find out which possessions you can keep and which may be sold to repay creditors.
Your Property
If you own or jointly own your home, your share forms part of the bankruptcy estate. Learn how property is dealt with, including the three-year rule on beneficial interest.
Your Car
Your vehicle can be claimed by the Official Receiver, but there are exceptions. If you need your car for work or essential travel, you may be allowed to keep it.
Bankruptcy Restriction Orders
If misconduct contributed to your bankruptcy, or you have tried to hide assets, the Official Receiver can apply for a Bankruptcy Restriction Order lasting up to 15 years.
Bankruptcy Annulment
In certain circumstances a bankruptcy order can be annulled, effectively reversing it. This guide explains the grounds for annulment and how to apply.
Individual Insolvency Register
Your details will appear on the publicly searchable Individual Insolvency Register while you are bankrupt. Find out what information is listed and when it is removed.
Bankruptcy and Pensions
How bankruptcy can affect your pension pot and pension income. Whether your retirement savings are protected and when the Official Receiver can make a claim.
Not sure where to start?
If you are struggling with debt and unsure whether bankruptcy is the right step, free and confidential advice is available. Contact StepChange on 0800 138 1111, or use the MoneyHelper debt advice locator to find a local adviser. You can also read our guide to alternatives to bankruptcy to compare your options, or visit GOV.UK to start your application if you have already decided to proceed.
For a quick overview of the full process, head back to our homepage or explore the guides above at your own pace.
This website provides general information about bankruptcy in England and Wales. It does not constitute financial or legal advice. You should seek independent advice tailored to your circumstances before making any decisions about insolvency.