The bankruptcy process and timeline explained

How to apply for bankruptcy

Step 1: Look at all your choices

Bankruptcy is often seen as a final step. It’s important to check if other options, like an could work for you first. Speak to our team today, and we can discuss all available options.

Step 2: Check that you are eligible for bankruptcy

You must live in England, Wales or Northern Ireland to apply. We’ve got a guide to help you check your eligibility (relink to the new eligibility page) that can help you make this decision.

Step 3: Prepare for your new circumstances

When you apply, your bank accounts might be frozen and stop working right away. It is a good idea to take out some cash before you apply. This means you can still buy food and other essentials.

Step 4: Fill in the form and pay the fee

If you’re eligible and feel that bankruptcy is the only solution left for your situation, you will need to pay a fee of £680 in the UK and £683 in Northern Ireland to apply to go bankrupt. You’ll also need to fill out a form on the Gov.uk website.

You need to fill out a form on the Gov.uk website. If you do not have all the money now, you can pay in smaller amounts over time, but you can’t actually go bankrupt until you have paid the fee in full. You also must tell the truth on your form.

You’ll need to agree to a credit check and confirm that all your details are correct. Failure to do this may result in criminal prosecution if you don’t declare all of your assets or include false information.

Once you’ve confirmed and agreed to this, the checks can begin to start the bankruptcy application process.

Step 5: Wait for a decision

It can take up to 28 days to get a response. The team checking your form will either say yes or no. They might ask you for more details. If they do, they get 14 more days to decide on your case.

What happens next?

Your finances will need to be investigated

An official receiver will look at your money. They are the person who manages your bankruptcy. They will freeze your bank accounts for a few days to check them. You will need to hand over any bank cards you do not use.

You’ll also have some strict rules to follow for 12 months. For example, you cannot borrow more than £500 without informing the lender you’re bankrupt. For more information on the restrictions in bankruptcy, see our guide (link to)

How long does bankruptcy take?

How long bankruptcy takes largely depends on whether your income is entirely dependent on benefits, or whether it’s earned income from something like a job.

Benefit Income only – As you are in receipt of benefit only income, you are unlikely to have to make any monthly payments into your bankruptcy; this will be confirmed after you go bankrupt.

Earned Income – It’s likely you will be asked to pay any money left over at the end of the month into Bankruptcy for 3 years, the amount you pay will be confirmed after you’ve gone bankrupt.

Bankruptcy normally lasts for 12 months. Here is a simple guide to what happens and when.

• After 1 year: You are usually released from your bankruptcy. The debts included in it are wiped away. You can get a free letter from the Insolvency Service to prove this.
  • If you have income left over at the end of the month, you’ll still be expected to pay towards your bankruptcy. You won’t have to make a payment if you only receive income from state benefits.
• After 15 months: Your name is taken off the public insolvency register.
• After 3 years: This is the deadline for the official receiver to deal with your home. If you had to pay some spare money to your debts each month, those payments will also stop now.
• After 6 years: The bankruptcy is wiped from your credit report.

Getting help and advice

Get debt help online or call us on 0800 316 1833 for a confidential chat today. We will check what help you can get and support you to take the next step.