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FAQs

Bankruptcy

Our FAQs answer the most common questions about how Bankruptcy work so you can decide with confidence whether this solution is right for you.

What if my bankruptcy has ended but I have no proof?

You can ask the Insolvency Service for a free letter to prove you are no longer bankrupt. It is a good idea to keep this letter safe. You can show it to the people you owed money to if they ever ask you for payments in the future

How do I know my bankruptcy has ended?
If everything goes to plan, your bankruptcy will end automatically. You might not get a letter to tell you this has happened. If you are unsure, you can look at the public Insolvency Register online to get an idea of when it finishes.
Who informs my creditors of my bankruptcy?
Once approved for bankruptcy, you will stop dealing with the creditors included in your bankruptcy, and making payments, and they will be unable to take any legal action against you. You will be assigned a Trustee to contact the creditors during your bankruptcy on your behalf.
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’re refused credit, this can have an additional negative effect on your credit rating.
Can I cancel bankruptcy?

You can 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 applies:

  • 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 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.

You won’t be required to make a payment from your income if you are just in receipt of state benefits.

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.
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 are unaware of one that comes to light later on, they’re still included. Any requests for payment from the creditor can be referred to the Official Receiver.
Which debts can’t be included in bankruptcy?
Secured debts are not normally included in bankruptcy, such as a mortgage or hire purchase on a car. Student loans, fines and penalties, debts arising from family proceedings such as maintenance orders, budgeting loans and crisis loans owed to the Social Fund are all excluded from bankruptcy.
Are CCJ debts included in bankruptcy?
If you have a CCJ (County Court Judgment), this debt is included if you go bankrupt. The judgment is written off 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 will be secured, which means it cannot be included and will still have to be paid.