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How to go bankrupt in the UK, aerial view of a British courthouse

How To Go Bankrupt in the UK: Your Complete 2026 Guide

Updated for 2026

If you are struggling with debt and wondering how to go bankrupt, you are not alone. Thousands of people across the UK apply for bankruptcy every year as a way to get a fresh financial start. Bankruptcy is a formal insolvency process that can write off most of your unsecured debts, but it comes with serious consequences you need to understand before taking that step. This guide covers everything you need to know about the bankruptcy process in England and Wales for 2026, including costs, eligibility, what happens to your assets, and the alternatives available to you.

What Is Bankruptcy and How Does It Work?

Bankruptcy is a legal process governed by the Insolvency Act 1986 (as amended). When you are declared bankrupt, an Official Receiver is appointed to manage your financial affairs. Most of your unsecured debts are written off, typically within 12 months, although some restrictions can last longer.

In England and Wales, you apply for bankruptcy yourself through the online Adjudicator’s Office on GOV.UK. This is known as a debtor’s petition. Alternatively, a creditor you owe at least £5,000 to can petition to make you bankrupt through the courts.

Once the bankruptcy order is made, the Official Receiver takes control of your assets and investigates your financial affairs. Your name is added to the Individual Insolvency Register, which is a public record.

How To Go Bankrupt: Step-by-Step Process

The process for applying for bankruptcy in 2026 is handled entirely online. Here is what you need to do:

1. Get Free Debt Advice First

Before applying, speak to a free debt adviser. Organisations like StepChange and MoneyHelper can help you understand whether bankruptcy is genuinely the best option for your situation, or whether an alternative like an Individual Voluntary Arrangement (IVA) or Debt Relief Order (DRO) would be more suitable.

2. Complete the Online Application

You apply through the GOV.UK bankruptcy service. You will need to provide details of your income, expenses, assets, and all the debts you owe. The application fee is currently £680, which you can pay in instalments before submitting.

3. Your Application Is Reviewed

An adjudicator reviews your application. If everything is in order, a bankruptcy order is made, usually within a few days. There is no court hearing required for debtor’s petitions.

4. The Official Receiver Takes Over

The Official Receiver contacts you for an interview about your finances. They will look at your income and may set up an Income Payments Agreement (IPA) if you have surplus income. This means you could be required to make monthly payments for up to three years.

5. Discharge After 12 Months

In most cases, you are automatically discharged from bankruptcy after 12 months. At that point, the debts included in the bankruptcy are written off for good. Your name remains on the Insolvency Register for three months after discharge.

How Much Does It Cost To Go Bankrupt in 2026?

The total cost to apply for bankruptcy in 2026 is £680. This is made up of:

  • £130 court fee (paid to the adjudicator)
  • £550 deposit towards the Official Receiver’s administration costs

You can save up and pay the £680 in instalments through the online service before you submit your application. Some charities and local councils may help with the fee in cases of extreme hardship.

If a creditor petitions to make you bankrupt, the costs are different and are borne by the creditor initially, though they may be recovered from your estate.

What Happens to Your Home, Car, and Assets?

This is one of the biggest concerns for anyone considering bankruptcy. The Official Receiver has the power to sell your assets to repay creditors, but there are important protections:

Your Home

If you own property, your share of any equity may be at risk. The trustee has up to three years to deal with your interest in the property. If there is little or no equity, your home may not be affected. Read our full guide on bankruptcy and your property for more detail.

Your Car

If you need your car for work or essential travel, you may be allowed to keep it, provided its value is reasonable (generally under £1,000 to £2,000). A high-value vehicle is more likely to be sold. See our guide on bankruptcy and your car.

Other Assets

Essential household items, tools of your trade (up to £1,000 in value), and basic domestic goods are normally exempt. Luxury items, savings, investments, and valuable collections can be claimed by the Official Receiver. Our bankruptcy and your assets page covers this in detail.

Alternatives to Bankruptcy You Should Consider

Bankruptcy is not the only option if you are struggling with debt. Depending on your circumstances, one of these alternatives might be a better fit:

  • Individual Voluntary Arrangement (IVA): a formal agreement to repay part of your debts over five or six years. Your assets, including your home, are usually protected. Learn more about IVAs.
  • Debt Relief Order (DRO): suitable if you owe less than £30,000, have few assets, and have little surplus income. Costs just £90 to apply. Learn more about DROs.
  • Debt Management Plan (DMP): an informal arrangement to repay debts at a reduced rate. No legal protection, but flexible. Learn more about DMPs.
  • Administration Order: available if you owe less than £5,000 and have a county court judgment against you. Learn more about administration orders.

A qualified debt adviser can help you work out which option is right for you. Visit our bankruptcy alternatives page for a full comparison.

Consequences of Going Bankrupt

Bankruptcy provides genuine debt relief, but it is not without consequences. You should be aware of the following before you apply:

  • Your bankruptcy is recorded on the Individual Insolvency Register, which is publicly searchable
  • Your credit rating will be severely affected for at least six years
  • You cannot act as a company director during the bankruptcy period
  • You cannot obtain credit of £500 or more without telling the lender you are bankrupt
  • Certain professions may be affected, including solicitors, accountants, and some financial roles
  • If the Official Receiver finds you have been dishonest or reckless, a Bankruptcy Restrictions Order can extend restrictions for up to 15 years

Not all debts are written off by bankruptcy. Student loans, court fines, child maintenance arrears, and debts obtained through fraud survive the process. See our guide on debts not written off by bankruptcy.

This guide provides general information about bankruptcy in England and Wales. It is not financial advice and should not be treated as such. Your circumstances are unique, and you should seek professional debt advice before making any decisions about insolvency. Free, confidential advice is available from StepChange, MoneyHelper, and the Insolvency Service.

Need Help Deciding What To Do?

If you are considering bankruptcy or want to explore your options, get free guidance today. We can help you understand which debt solution might work best for your situation.

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