If you have a debt problem, one of your options for sorting it out might be bankruptcy. You can apply for bankruptcy if you can’t pay back your debts.
As well as applying for bankruptcy yourself, someone else you owe money to (a creditor) can ask a court to make you bankrupt, even if you don’t want them to. They can only do this if you owe at least £5,000. You can find out more about creditors making you bankrupt.
Bankruptcy can have serious consequences – it might not be your only option and it might not be the best one for you. You can get more information about other debt solutions, for example a debt relief order (DRO) or an individual voluntary arrangement (IVA).
Advantages of going Bankrupt
Disadvantages of going Bankrupt
What happens at the end of bankruptcy?
Your bankruptcy will normally end after a year – this is known as ‘discharge’. After discharge you won’t have to repay the debts covered by the bankruptcy. However, you will still have to pay some debts like court fines and loans from the Student Loans Company.