Bankruptcy in England & Wales
Bankruptcy is a formal insolvency procedure that writes off most unsecured debts you cannot realistically repay. It is the English and Welsh counterpart to Scottish sequestration.
What is bankruptcy?
Bankruptcy is a court-recognised process, applied for online through the Adjudicator, that transfers control of your assets to an Official Receiver or trustee. Most qualifying unsecured debts are written off and you are usually discharged after twelve months.
Who is it for?
It usually suits people with little or no surplus income and few realisable assets, where an IVA would not deliver a meaningful return to creditors.
- You cannot realistically repay your debts within a reasonable period
- You have limited assets and limited disposable income
- You live in England, Wales or Northern Ireland
What it costs and what happens
There is an application fee payable to the Insolvency Service. Once the order is made, creditors must stop contacting you. If you have surplus income you may be asked to pay an Income Payments Agreement for up to three years.
Alternatives we always model first
An IVA or a Debt Relief Order may protect more of your position. We compare every route before recommending bankruptcy, and we will tell you plainly if a free debt charity is the better option for you.
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