Jump to Main Content

Bankruptcy FAQs

We know that being in debt is a stressful and confusing time, so we have put together this list of questions that we are commonly asked about bankruptcy, to help you find the answers you need.

Get advice now

  1. How will bankruptcy affect my credit rating?
  2. Can I continue to apply for credit while I am bankrupt?

Get advice now

Content for all of the above FAQ sections is shown below:


What is bankruptcy?

Visit our page What is bankruptcy to find out all about this debt solution.

What are the pros and cons of bankruptcy?

The pros and cons of bankruptcy are explained on our page Bankruptcy at a glance.

Is bankruptcy the right debt solution for me?

We have put together some things to think about when considering if bankruptcy is right for you here.

Which debts can be included in bankruptcy?

Most of your unsecured debts such as credit cards, personal loans, payday loans, guarantor loans, catalogue debts, store cards and overdrafts can all be included in the bankruptcy. Additionally, HMRC Tax or VAT debts for which you are personally responsible, council tax arrears, utility bill arrears, gambling debts, outstanding balances after home or vehicle repossession, benefits overpayments (unless due to fraud) and business loans for which you are personally responsible can also be included in bankruptcy.

Are CCJ debts included in bankruptcy?

If you have a CCJ (County Court Judgement), this debt is included if you go bankrupt. The judgement is written off in the same way as any other unsecured debt and is the same for an Attachment of Earnings. However, if a charging order has already been issued against your property, the debt is now secured which means it cannot be included and will still have to be paid.

Which debts can’t be included in bankruptcy?

Secured debts cannot be included in the bankruptcy such as a mortgage or hire purchase on a car. Unsecured debts including student loans, fines and penalties (such as parking and speeding fines), debts arising from family proceedings such as maintenance orders, budgeting loans and crisis loans owed to the Social Fund are all excluded from bankruptcy.

Can debts be added after you’ve gone bankrupt?

Any unsecured debt that can be included in bankruptcy that you are liable for or may become liable for on the date you are declared bankrupt is included. This means that if you forget about a debt or if you were unaware of one which comes to light later on, they are still included. Any requests for payment from the creditor can be referred to the Official Receiver.

What happens to my assets in bankruptcy?

Any assets, including houses, cars, jewellery and household items, are likely to be sold off to raise money to pay your debts.  

I live in Scotland. Can I file for bankruptcy?

In Scotland, the process is slightly different, and you would file for Sequestration.


How much does it cost to file for bankruptcy?

There is a £680 fee to file for bankruptcy, but you may be able to get support to pay this through a charity or a grant, should you meet the criteria. This fee can be paid in instalments but bankruptcy proceedings can’t start until it is paid in full.

What is the bankruptcy process?

The full bankruptcy process is explained here.

How long will my bankruptcy last?

Bankruptcy will normally last for 12 months, after which time your debts are written off at the end of bankruptcy. If you have a surplus income of more than £20 a month, you may also be required to pay into the bankruptcy for up to three years.

Can I cancel bankruptcy?

You are able to cancel bankruptcy, which would lift the restrictions on you and the impact on your credit rating sooner, but you can only do this if one of the following reasons apply:

  • All of your debts and fees for your bankruptcy have been paid in full by either you or a third party.
  • You’ve set up an Individual Voluntary Arrangement (IVA) instead.
  • The bankruptcy was set up in error.


How will bankruptcy affect me?

There are many things to consider with bankruptcy, as it has several implications. Find out more on our page What is the small print for bankruptcy?

Who will know about my bankruptcy?

Our page Who will know about my bankruptcy? explains how your bankruptcy will be promoted and published.


How will bankruptcy affect my credit rating?

Visit How will bankruptcy affect my credit rating? to find out how bankruptcy will impact on your credit file.

Can I continue to apply for credit while I am bankrupt?

It is illegal to apply for £500 or more of credit while you are bankrupt without informing the lender that you are bankrupt. In any case, most creditors would run a credit check on you and discover the note on your credit file, which lasts for six years following the date you filed for bankruptcy. We would therefore not recommend applying for credit until your file is clear, as if you are refused credit, this can have an additional negative affect on your credit rating.


Who informs my creditors of my bankruptcy?

Once approved for bankruptcy, you will stop dealing with your creditors and making payments, and they will be unable to take any legal action against you. You will be assigned a Trustee, who will contact the creditors during your bankruptcy on your behalf.

If you would like impartial, expert advice about bankruptcy or other debt solutions that might be available to you, call PayPlan FREE on 0808 278 3071 or fill in our simple online form and we will call you back.

Get advice now

Let’s make life more affordable

You’re just two steps away from taking back control of your finances and freeing up more money for you and your family.

No impact on your credit score.

Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly

Sandra Daly

5 stars
pdhf-pound pdhf-pound-coinspdhf-poundspdhf-pound-notespdhf-house-ownpdhf-house-rent pdhf-house-family pdhf-briefcasepdhf-job-seekerpdhf-retired pdhf-working-hourspdhf-studentpdhf-jobpdhf-phonepdhf-house-otherpdhf-debt-2pdhf-debt-3pdhf-debt-4 pdhf-debt-1pdhf-yespdhf-nopdhf-checkpdhf-livechatpdhf-self-employedpdhf-whatsapppdhf-intercom

What's your approximate level of debt?

Great! It looks like we can help you.

Simply complete your details below and connect to one of our friendly advisers.

How would you like to connect?

Best time for us to call

Excellent, professional, friendly and empathetic service. PayPlan have given us our lives back!
Sandra Daly

Sandra Daly

5 stars
100% secure & confidential
0800 316 1833 Request Call Back