Bankruptcy Advice | Debt Advice

What is Bankruptcy?

Bankruptcy is a debt solution available that can help people who are unable to pay any of their debts. It is seen as a last resort for most people in debt, as there are other debt solutions that may be more beneficial. However, if bankruptcy is the only option for your circumstances it can be a great opportunity to start a fresh and lift the weight off your shoulders.

You can make yourself bankrupt or if your debts are over £750 you can be made bankrupt by a creditor.
When you enter into Bankruptcy all of your assets are handed over to a Trustee who will sell your assets and distribute the proceeds to your creditors who you owe money to. This is to repay as much of the debt as possible.
After Bankruptcy, the creditors involved will not be able to make any further claims against you for your debt.

Disadvantages to entering into bankruptcy?

Your bankruptcy is advertised in the local press
Your landlord and anyone you have financial connections (banks etc...) with will be told about your bankruptcy
Your employment may be at risk in some professions
All of your assets become in possession of the Trustee who has the authority to disperse and dispose of them without your authority
It remains on your credit record

Thinking about Bankruptcy | Being made Bankrupt

If you are thinking about Bankruptcy or a Creditor/s is trying to make you bankrupt, contact us at Debt Advice. We will be able to discuss your situation in detail to see if Bankruptcy is in fact your best and only option. If it isn't we can point you in a better direction. If it is, we can tell you all you need to know in giving you the best Bankruptcy advice. You can call our debt helpline on 0800 043 5133 or fill in a form on our Debt Advice page and we will be in touch.
You can also text us for debt advice on 88010.

*nb All information submitted is strictly confidential. We will not pass your details on to any third party and we will not use your information for any marketing purpose. Our debt advice is free, in your best interests for your individual circumstances and you are under no obligations.

Bankruptcy Fees

If your debts are serious enough that you are considering the prospect of going bankrupt, you need to be aware that there are charges for declaring yourself bankrupt. These being a £150 court fee and a £450 to help meet the costs of the Official Receiver. This could mean total costs of £600 which you are legally bound to meet yourself.

If you are on means-tested benefits, then you will be exempt only from the court costs of £150. This is another reason why it's so important that you get debt help and consider all other possible debt solutions such as an IVA (Individual Voluntary Arrangement) first.

We may be able to offer you alternatives or help filling out your forms.

Note: If you are married separate bankruptcy fees will apply. * These fees are correct at time of publishing.

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