How long does bankruptcy last?

Bankruptcy typically lasts for 12 months, but there’s a bit more to it than that. The easiest way to answer this question would be to look at the timeline of a bankruptcy solution, as you’ll need to consider the impact applying for bankruptcy would have on you and your day-to-day life.

12 months after bankruptcy

• You’ll be discharged and the debts included within the bankruptcy will be written off
• Restrictions against you will end

15 months after bankruptcy

• Your bankruptcy listing will be removed from the public Insolvency Register.

Three years after bankruptcy

• This is the official deadline for your Official Receiver to finish dealing with your home, although it’s worth noting that the three years begins from the date they were notified about your home (if you didn’t make them aware until later, the three year period will have started later)
• If you had an IPA (Income Payment Arrangement) set up against you, you’ll also finish paying this around this time. You’ll have had an IPA in place if you had a little spare income left over each month during your bankruptcy to offer to your creditors.

Six years after bankruptcy

• Your bankruptcy will be removed from your credit report

The impacts of bankruptcy

Renting a property

If you’re looking to rent a property, you may be asked by a landlord and/or letting agent if you’ve ever been made bankrupt in the past. This could make taking out a tenancy agreement more difficult but explain your situation to them and see if you can come to an arrangement. It may help to provide a guarantor to give them extra reassurance that your rent will be paid if this is an option available to you.

Your credit report will be affected

As your bankruptcy will be listed on your credit report for six years from the date it starts, this will lower your credit rating, although the effects will lessen over time.  

This can make it harder to obtain credit during the bankruptcy period and once you’ve been discharged as creditors review your credit report every time you make an application to borrow money.

Your ability to apply for a Current Account will be impacted

Once your bankruptcy order is made, the bank account you’re using is frozen for up to a week whilst the Official Receiver investigates your finances and, in some cases, the bank may decide to close it.

During your bankruptcy and for about 12 months after you’ve been discharged, you might struggle to open a Current Account with an overdraft.

In either of these cases, you’ll have to open a Basic Account instead.

Your employment

If you work in any of the following roles, you’ll be unable to carry them out while your bankruptcy is in place:

• Insolvency Practitioner
• Justice of the Peace
• MOT Authorised Examiner
• Charity Trustee
• Company Director
• Registrar of Births, Marriages and Deaths
• Consumer Credit Licence Holder
• Councillor or MP
• Magistrate
• School Governor

Whatever your role, though, make sure you check your employment contract carefully for any clauses around bankruptcy.

Find out your options

If you want to find out whether you meet the criteria for bankruptcy or whether there are other debt solutions which are more suited to your circumstances, there are many ways to get in touch:

• Call us free on 0800 0800 316 1833
• Complete our online form and see what debt solutions are available to you
• Speak to us over Live Chat