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Declare yourself bankrupt in the UK - guide for 2026

How to Declare Yourself Bankrupt in the UK

Updated for 2026

If your debts have become unmanageable and you cannot see a way to repay them, you may be considering whether to declare yourself bankrupt. Bankruptcy is a formal insolvency process that can write off most of your unsecured debts, giving you a fresh financial start. This guide explains the process, the costs involved, and the alternatives you should consider before making a decision.

What Does It Mean to Declare Yourself Bankrupt?

When you declare yourself bankrupt, you are applying to the courts to be officially declared unable to pay your debts. In England and Wales, this is done through an online application to the Insolvency Service via the GOV.UK bankruptcy application service.

Once your application is approved by an adjudicator, you are legally bankrupt. An Official Receiver is appointed to manage your case. They will look at your income, assets, and debts to decide what happens next.

Bankruptcy typically lasts for 12 months, after which you are automatically discharged. At that point, most of your qualifying debts are written off.

Who Can Declare Themselves Bankrupt?

You can apply for bankruptcy if:

  • You live in England or Wales (Scotland has a separate process called sequestration)
  • You owe at least one debt you cannot pay
  • You are unable to pay your debts as they fall due

There is no minimum or maximum debt level required to apply. However, bankruptcy may not be the most suitable option if your total debts are relatively low, as the application fee alone is £680 (as of 2026).

How Much Does Bankruptcy Cost in 2026?

The current cost to apply for bankruptcy is £680. This is a single fee paid to the Insolvency Service when you submit your application online. You can pay in instalments before submitting your final application.

If you are on a very low income, some charities and debt advice organisations may be able to help with the fee. Contact StepChange or MoneyHelper for guidance.

The Bankruptcy Application Process

Since 2016, bankruptcy applications in England and Wales are made online rather than through the courts. Here is what happens:

  1. Complete the online application at GOV.UK
  2. Pay the £680 application fee
  3. An adjudicator reviews your application (usually within 28 days)
  4. If approved, a bankruptcy order is made and the Official Receiver takes over
  5. The Official Receiver contacts you to arrange an interview
  6. After 12 months, you are discharged from bankruptcy

During the bankruptcy period, you must cooperate fully with the Official Receiver. They may require you to make monthly payments from your income if you have surplus earnings. This is known as an Income Payment Agreement (IPA).

What Happens to Your Assets and Property?

When you go bankrupt, your assets may be used to repay creditors. The Official Receiver will assess what you own and decide what needs to be sold.

Assets that may be affected include:

  • Your home (if you own property, your share of equity may be at risk)
  • Vehicles worth more than a reasonable amount for getting to work
  • Savings, investments, and valuable possessions
  • Any business assets if you are self-employed

Essential household items and tools needed for your job are normally protected. Read more in our guide to bankruptcy and your assets.

Debts That Bankruptcy Does Not Cover

Bankruptcy does not write off all debts. The following are typically excluded:

  • Student loans
  • Child maintenance arrears
  • Court fines and compensation orders
  • Debts arising from fraud
  • Secured debts (such as your mortgage, unless the property is sold)

For a full breakdown, see our guide on debts not written off by bankruptcy.

Alternatives to Bankruptcy You Should Consider

Bankruptcy is a serious step with lasting consequences. Before you apply, consider whether one of these alternatives might be more appropriate for your situation:

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. An insolvency practitioner manages the arrangement. Your assets, including your home, are generally better protected under an IVA than in bankruptcy.

Debt Relief Order (DRO)

A DRO is designed for people with relatively low debts (under £30,000), minimal assets, and a low disposable income. It freezes your debts for 12 months, after which they are written off. 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 does not write off debts, but it can make repayments more manageable.

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. The court sets a monthly payment amount and distributes it to your creditors.

Consequences of Going Bankrupt

Before you declare yourself bankrupt, be aware of the following:

  • Bankruptcy stays on your credit file for six years
  • Your name appears on the Individual Insolvency Register
  • You cannot act as a company director during the bankruptcy period
  • You may face bankruptcy restriction orders if you acted irresponsibly
  • Your bank accounts may be frozen initially
  • Certain professions may be affected (solicitors, accountants, some financial roles)

Despite these consequences, for many people bankruptcy provides the quickest route to becoming debt free. After discharge, you can begin rebuilding your finances.

Getting Free Advice Before You Apply

Before deciding to declare yourself bankrupt, get free, impartial advice. Several organisations offer this at no cost:

You can also use our free callback service to speak with someone who understands the process.

Financial disclaimer: The information on this page is for general guidance only and does not constitute financial advice. Every situation is different. You should seek professional advice before making decisions about your debts.

Need Help With Your Debts?

Whether bankruptcy is the right path or an alternative suits you better, getting expert advice is the first step. Request a free callback and we will help you understand your options.

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