Should You Declare Yourself Bankrupt?

Find out whether declaring yourself bankrupt is the right solution for you.

  • Learn the pros and cons of bankruptcy
  • Consider alternatives to declaring yourself bankrupt that may be more suitable.
  • Receive non-judgemental help and support from our experienced team.
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May not be suitable in all circumstances. Fees and disadvantages may apply, read here. 


Money Helper (formerly The Money Advice Service) is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. Please note that we have no affiliation with Money Helper.

Start your journey to financial freedom.

1. Speak to our team.

Our experienced advisors are waiting to help you start dealing with your debts.

2. We guide you.

Find out more about the debt repayment plans available to you.

3. Ongoing support.

Our advisors will support and guide you throughout your journey.

Find out if bankruptcy could be the right way to deal with your debts.

As with any debt agreement, it’s important that you seek professional advice before committing.

Bankruptcy is a formal agreement between you and your creditors to repay what you can afford over a period of usually 12 months. Once this period has ended all outstanding debts are written off in full.

With bankruptcy, an ‘official receiver’ takes control of your debts and assets for you and liaises with your creditors.

As part of the bankruptcy application, a means test is carried out to see if you can afford even a small monthly repayment towards your debts. If you cannot, you will not need to make any repayments at all.

As with any formal debt solution, it is important that you speak to a bankruptcy professional to ensure that you fully understand the implications of going bankrupt.

If you do not think that you will ever be in a position to repay your debts, you could be eligible for bankruptcy.

Below are the main advantages of going bankrupt. To learn more, please get in touch.

  • No repayments – depending on your financial circumstances you may not need to make any repayments towards your debts.
  • Debt written off – all debts included in your bankruptcy are written off.
  • No further creditor action – creditors are prevented from taking any further action against you.
  • No more charges or interest – charges and interest are frozen.
  • No creditor contact – your creditors will be prevented from contacting you further.

Below are the main disadvantages of going bankrupt. To learn more please get in touch.

  • Credit rating – your credit record will be affected for 6 years.
  • Selling your assets – your assets, including your home (if you own it) and vehicle may have to be sold to cover outstanding debts.
  • Details added to a public register – details of your bankruptcy will be entered into a public register.
  • Credit Applications – during your bankruptcy you may be restricted from applying for further credit.
  • Bankruptcy fee – there is a fee of £680 that needs to be paid to the Insolvency Service at the time you submit your application. You can pay the fee in instalments although the fee will need to be paid in full before your application can be submitted.
  • Restricted employment – you may be prevented from holding certain types of employment.

Debts we can help with

This is not a full list of the debts that can be included in a Bankruptcy application, please get in touch to see what other debts can be included.

Credit Cards

Unsecured Loans

Payday Loans

CCJ’s/HMRC

Overdrafts

Council Tax

Utilities

Catalogues

Get Started

Bankruptcy may not be suitable in all circumstances. Fees and disadvantages may apply, learn more here. Your credit rating may be affected.

Click here to get started

Frequently asked Bankruptcy questions

As bankruptcy is a formal solution it has implications and it’s a good idea to seek professional advice before deciding whether it’s the right option for you.

For example:

  • If you own your own home you may need to sell it so that any equity can be used to repay your debts.
  • Certain types of employment positions cannot be held if you are bankrupt, including being a director of a company or an accountant.
  • You will not be able to apply for credit without declaring to the lender that you are bankrupt, and
  • Details of your bankruptcy are entered onto a public register.

For a more details understanding of the impact of going bankrupt please get in touch with us today.

The amount of debt that will be written off at the end of the term of your debt solution will depend on a number of factors, including the amount of debt and your monthly disposable income.

To find out how much of your debt you could write off based on your own personal circumstances please get in touch via our contact form above.

Some professions, such as accountancy and solicitors, are prohibited from practising if you ae bankrupt.

In general however, there should not be any impact on your job but again, it is important to seek professional advice before committing to going bankrupt.

Although the initial advice that we offer is completely free, there is a fee of £680 that needs to be paid when you submit your bankruptcy application. This fee is payable to the Insolvency Service. This fee can be paid in instalments although the full amount will need to be paid before your application can be submitted.

All debt solutions will have an impact on your credit score.

Details of your debt solution will be entered onto your credit record and will remain there for a period of usually 6 years.