Key points
- You apply online to the Insolvency Service
- There is an application fee, which you can pay in instalments before applying
- Usually discharged after 12 months
- You may have to make payments for up to three years
- Your home and valuable belongings may be sold
How do you go bankrupt?
You apply online through the Insolvency Service. An adjudicator reviews your application and, if it's accepted, makes you bankrupt. An official receiver then takes control of your assets and contacts your creditors.
What happens to my home?
If you own your home, its value can be used to pay your creditors. Your partner or family may be able to buy your share. Tenants can usually stay, but should tell their landlord.
What can I keep?
You can usually keep items you need for daily life, such as clothes, furniture and household equipment, and tools you need for work. A vehicle may be sold if it's worth a lot, unless you need it and a cheaper one wouldn't do.
Do I have to pay anything?
If you have spare income after essential costs, you may be asked to pay some of it to your creditors for up to three years, through an income payments agreement or order.
How long does it last?
Most people are discharged after 12 months, and most remaining debts are then written off. Some debts, such as student loans, court fines and child maintenance, aren't cleared.
Frequently asked questions
How long does bankruptcy last?
Most people are discharged after 12 months, although you may have to make payments for up to three years.
Will I lose my house if I go bankrupt?
You might. If you own your home, its value can be used to pay creditors, though family may be able to buy your share.
Can I go bankrupt in Scotland?
Scotland has its own process called sequestration, run by the Accountant in Bankruptcy.
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Sources and further reading
This guide is general information, not advice, and was correct when last updated. Rules and limits can change. Speak to a regulated adviser about your own situation.