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To go bankrupt in the UK - a path from darkness to light symbolising a fresh financial start

To Go Bankrupt in the UK: What You Need to Know in 2026

Updated for 2026

If you are thinking about whether to go bankrupt, you are not alone. Thousands of people across the UK face overwhelming debt each year and consider bankruptcy as a way to get a fresh start. This guide covers the full process for 2026, including the current application fee, what happens to your assets, how long bankruptcy lasts and what alternatives might suit you better. Everything here is general information to help you understand your options, not financial advice.

What Does It Mean to Go Bankrupt?

Bankruptcy is a formal insolvency process governed by the Insolvency Act 1986. When you go bankrupt, you are legally declared unable to repay your debts. An Official Receiver (appointed by the court) takes control of your financial affairs, and most of your qualifying debts are written off, typically after 12 months.

In England and Wales, you apply for bankruptcy yourself through the online adjudicator service on GOV.UK. This replaced the old court-based petition process. Scotland and Northern Ireland have separate insolvency procedures.

Bankruptcy is designed for people who genuinely cannot repay what they owe. It is not a loophole or a shortcut. It carries real consequences for your credit file, your assets and potentially your employment. But for many people, it is the most practical route to clearing unmanageable debt and rebuilding their finances.

How to Go Bankrupt: The Application Process

Since 2016, applying for bankruptcy in England and Wales is done entirely online. Here is how the process works in 2026:

Step 1: Complete the Online Application

Visit the GOV.UK bankruptcy application page and fill in your details. You will need to list all your debts, income, expenses and assets. Be honest and thorough, as the adjudicator will review everything.

Step 2: Pay the Application Fee

The current bankruptcy application fee is \u00a3680. This covers both the adjudicator fee and the deposit paid to the Official Receiver. You can pay by debit or credit card, or in instalments through the online system before submitting your application.

Step 3: Adjudicator Review

An adjudicator (not a judge) reviews your application. In most straightforward cases, the bankruptcy order is made within a few days. If more information is needed, this may take longer.

Step 4: Official Receiver Takes Over

Once the order is made, the Official Receiver contacts you to arrange an interview. They will ask about your finances, assets, how your debts built up and your current situation.

What Happens to Your Assets When You Go Bankrupt?

This is often the biggest concern for people considering bankruptcy. The Official Receiver can sell certain assets to repay your creditors. Here is what you need to know:

  • Your home: If you own property, the Official Receiver may claim your share of equity. If you rent, your tenancy is not usually affected. Read more in our bankruptcy and property guide.
  • Your car: If you need your vehicle for work or essential travel and it has modest value, you may be able to keep it. Our bankruptcy and your car guide explains the rules.
  • Household items: Basic household goods, clothing and tools needed for your job are generally protected.
  • Pensions: Most pension pots are protected from bankruptcy. The Official Receiver cannot usually touch your workplace or personal pension.

If your income is above what the Official Receiver considers reasonable for your household needs, you may be asked to make an Income Payments Agreement (IPA) for up to three years.

How Long Does Bankruptcy Last?

Bankruptcy typically lasts 12 months from the date the order is made. After that period, you are automatically discharged and most of your debts are written off. Your name will appear on the Individual Insolvency Register during this time.

However, there are some situations where discharge can be delayed or restrictions can be extended:

  • If you do not cooperate with the Official Receiver, your discharge may be suspended.
  • A Bankruptcy Restrictions Order (BRO) can extend certain restrictions for up to 15 years if you have been reckless or dishonest.
  • Bankruptcy stays on your credit file for six years from the date of the order, even after you are discharged.

For most people who engage honestly with the process, the 12-month period applies and discharge happens automatically.

Debts Not Written Off by Bankruptcy

Not every debt disappears when you go bankrupt. The following types of debt survive bankruptcy and you will still owe them afterwards:

  • Student loans
  • Court fines (including magistrates’ court fines)
  • Child maintenance and child support arrears
  • Debts arising from fraud
  • Social fund loans
  • Some compensation orders

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

Alternatives to Going Bankrupt

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

Free debt advice is available from StepChange and MoneyHelper. Both services are confidential and can help you work out which solution fits your situation.

Disclaimer: The information on this page is for general guidance only and does not constitute financial or legal advice. Every person’s situation is different. If you are struggling with debt, we recommend speaking to a qualified debt adviser before making any decisions. Free, confidential advice is available from StepChange, MoneyHelper and Citizens Advice.

Not Sure if Bankruptcy Is Right for You?

There are several alternatives that could help you deal with your debts without going bankrupt. Explore your options and find out which solution fits your circumstances.

Explore Bankruptcy Alternatives