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Voluntary Bankruptcy in the UK: Your Complete 2026 Guide

Updated for 2026

Voluntary bankruptcy is the process of applying to be declared bankrupt yourself, rather than having a creditor force you into it. If your debts have become unmanageable and you cannot see a realistic way to repay what you owe, voluntary bankruptcy could offer you a fresh financial start. In 2026, the process is handled entirely online through the Insolvency Service, and this guide walks you through everything you need to know before making that decision.

What Is Voluntary Bankruptcy?

Voluntary bankruptcy (sometimes called a debtor’s petition) is when you choose to apply for your own bankruptcy order. This is different from being made bankrupt by someone you owe money to, which is known as a creditor’s petition.

Since 2016, all voluntary bankruptcy applications in England and Wales are made online through the GOV.UK bankruptcy application service. You no longer need to attend court. The Adjudicator, an independent officer within the Insolvency Service, reviews your application and decides whether to make a bankruptcy order.

In 2026, the application fee is \u00a3680. This can be paid in instalments before you submit your application, which is helpful if you are already struggling financially. Once you have paid the full fee and submitted your form, the Adjudicator typically makes a decision within 28 days.

Who can apply?

You can apply for voluntary bankruptcy if you live in England or Wales (Scotland has a separate process called sequestration). There is no minimum or maximum debt level required. However, bankruptcy is generally most suitable when your total debts significantly outweigh your ability to repay them, and when you have limited assets that could be sold to cover what you owe.

How the Voluntary Bankruptcy Process Works in 2026

The process follows a clear set of steps. Knowing what to expect helps you prepare properly and avoid surprises.

Step 1: Check your eligibility

Before applying, make sure you have explored all other options. Speak to a free debt adviser at StepChange or MoneyHelper to confirm that voluntary bankruptcy is the right route for your circumstances. There may be alternatives to bankruptcy that suit you better.

Step 2: Gather your financial information

You will need details of all your debts, income, expenses, and assets. This includes bank statements, credit agreements, council tax arrears, and any other liabilities. Being thorough at this stage speeds up the process.

Step 3: Complete the online application

Visit the GOV.UK bankruptcy service and fill in the application form. You will need to provide your personal details, a full list of creditors, details of your income and outgoings, and information about any assets you own.

Step 4: Pay the fee

The \u00a3680 fee must be paid before your application is submitted. You can pay in instalments, building up the fee over time. No part of this fee is refundable, even if your application is refused.

Step 5: Wait for the decision

The Adjudicator reviews your application. If everything is in order, a bankruptcy order is made. You will then be assigned an Official Receiver who manages your case.

What Happens After You Are Declared Bankrupt?

Once a bankruptcy order is made, several things happen quite quickly. Understanding these consequences is crucial before you apply.

Your name and details are added to the Individual Insolvency Register, which is a public record. The Official Receiver contacts your creditors to inform them of the bankruptcy, and most of them must stop chasing you for payment.

Your assets

The Official Receiver reviews everything you own. Essential items like basic household goods, tools needed for your job, and a reasonable vehicle for getting to work are usually protected. However, property, savings, and valuable possessions may be sold to repay creditors. Read our full guide on bankruptcy and your assets for more detail.

Your income

If your income is above what is needed for reasonable living expenses, you may be asked to make an Income Payment Agreement (IPA) or Income Payment Order (IPO). These payments typically last for three years.

Your bank account

Your existing bank accounts may be frozen when the bankruptcy order is made. You will need to open a new basic bank account. Most high street banks offer these.

Discharge

Voluntary bankruptcy normally lasts 12 months. After this period, you are discharged from most of your debts and can start rebuilding your finances. Some debts, such as student loans, court fines, and child maintenance, are not included in bankruptcy. See our guide on debts not written off by bankruptcy.

Voluntary Bankruptcy: Advantages and Disadvantages

Choosing to go bankrupt voluntarily is a significant decision. Here are the key points to weigh up.

Advantages

  • Most unsecured debts are written off after 12 months
  • Creditors must stop contacting you once the order is made
  • You get a genuine fresh start, free from overwhelming debt
  • The process is straightforward and handled entirely online
  • You can continue working in most jobs (with some exceptions)

Disadvantages

  • Your home may need to be sold if you own property
  • Bankruptcy stays on your credit file for six years
  • Your name appears on the public Insolvency Register
  • Some professions restrict or prohibit bankrupt individuals from practising
  • You cannot act as a company director during the bankruptcy period
  • The \u00a3680 application fee is non-refundable

If you are unsure whether the disadvantages outweigh the benefits in your situation, free advice from StepChange or MoneyHelper can help you decide.

Alternatives to Voluntary Bankruptcy

Bankruptcy is not the only option for dealing with serious debt. Depending on your circumstances, one of these alternatives might be more suitable.

An Individual Voluntary Arrangement (IVA) lets you make affordable monthly payments over five or six years, after which remaining debts are written off. This can protect your home.

A Debt Relief Order (DRO) is designed for people with debts under \u00a330,000, limited assets, and low disposable income. It lasts 12 months and costs just \u00a390 to apply.

A Debt Management Plan (DMP) is an informal arrangement where you repay debts at a reduced rate. There is no fixed end date, but it avoids formal insolvency.

For a full comparison, visit our bankruptcy alternatives page.

Important Information

The information on this page is for general guidance only and does not constitute financial or legal advice. Every person’s financial situation is different, and what works for one individual may not be appropriate for another.

Before making any decisions about voluntary bankruptcy or any other debt solution, we strongly recommend speaking to a qualified, regulated debt adviser. Free, impartial advice is available from:

All information is accurate as of March 2026. Legislation, fees, and thresholds may change. Always check the latest guidance on GOV.UK before proceeding.

Not Sure If Bankruptcy Is Right for You?

Explore the full range of debt solutions available in the UK. There may be an alternative that better suits your circumstances.

View Bankruptcy Alternatives