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i England, Wales and Northern Ireland

Personal bankruptcy

Personal bankruptcy

Bankruptcy is a legal procedure used to write off most debts. Going bankrupt can affect your life in many ways.

Bankruptcy is different in different parts of the UK:


  • Scotland - Visit our section on sequestration (Scottish bankruptcy)
  • England, Wales or Northern Ireland - Find out more below

Video: An introduction to bankruptcy

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How does bankruptcy work?

Bankruptcy can be a good option for people who cannot pay their debts in a reasonable amount of time.

Some important things to know:


  • It is a form of insolvency
  • It is legally binding
  • Any assets you own (like your home) can be sold to pay off your debts

It is not a good option if:


  • Your assets are worth more than your debts
  • Your regular payments are up to date
  • You can afford to keep paying your debt

Changes to debt relief orders

The government is making changes to who can apply for a DRO.

This is another form of insolvency. From 28 June, in England and Wales, people may be able to apply for a DRO:

  •  With a debt amount of £50,000 or under. The current limit is £30,000
  • If they own a vehicle worth £4,000 or under. The current limit is £2,000

What this means for you if you have had advice and been recommended bankruptcy

The advice we gave you is still right for your situation. However, a DRO may also be available to you after 28 June.

If you want to see if a DRO will be a better option for you than bankruptcy after the changes, please: 

  • Log on to your account after 28 June and complete another debt advice session. Remember to wait until 28 June if you decide to do this. This also gives you the chance to check your information and update your online account if anything has changed since you first got debt advice
  • Stop your bankruptcy application and any payments to the fee until you have decided which solution is right for you
  • Find a way to deal with your creditors in the meantime, such as Breathing Space or forbearance. There is more information about these options in your personal action plan

Bankruptcy may still be the option you decide to go ahead with, and your advice may not change. We cannot guarantee a DRO will be available to you after the changes take place.

For more information about DROs, please visit read our guide.

What if I have started my bankruptcy application?

If you don’t want to see if a DRO is now right for you, you don’t need to do anything. You can ignore this email and carry on with your bankruptcy application.

If you have started your application and not paid your full fee, you can still wait until 28 June and check if bankruptcy is still right for you.

Just log into your online account and complete another advice session. If, after 28 June, a DRO is now the option you want to go ahead with, you can cancel your bankruptcy application. Any money you have paid to the fee will be refunded to you.

If you have any questions, please get in touch.

Common questions about bankruptcy

How much does it cost to go bankrupt?

Bankruptcy fees depend on where you live in the UK.

England and Wales

You pay a total of £680.

This made up of:


  • A £130 fee to the adjudicator, and
  • £550 to the official receiver

Northern Ireland

The total cost is £676.

This is made up of:


  • A £151 court fee
  • A £525 bankruptcy deposit
  • Solicitor's fees are around £7

How does bankruptcy work?

Most of your debts are written off when you go bankrupt. But it is a big step.

It involves fees and can impact many areas of your life, such as your job or home.

Personal bankruptcy normally lasts for a year.

During this time:


  • You cannot borrow more than £500 without telling lenders you are bankrupt
  • You must let the official receiver know of any changes to your budget
  • You could be asked to sell items of value like:
  • Your home
  • Your car

Does going bankrupt clear all your debts?

Most debts are included in bankruptcy. These debts are written off at the end.

Some debts are not included in bankruptcy, like:


What happens after a bankruptcy discharge?


  • Your debts are written off
  • The restrictions placed on you during your bankruptcy are usually lifted

The official receiver can extend the bankruptcy restrictions if your bankruptcy was caused by dishonest or reckless behaviour.


  • They do this by a bankruptcy restriction undertaking (BRU) or order (BRO)
  • It can last up to 15 years

Bankruptcy is recorded on:


  • The Insolvency Register (England and Wales)
  • Bankruptcy Register (Northern Ireland)

It stays on these registers until 3 months after your bankruptcy ends.

This can be longer if you have a BRU or BRO.


  • You may still have to make payments towards your bankruptcy
  • The official receiver will decide if you have to do so