Bankruptcy: the basics
How bankruptcy works in England and Wales, what it costs (£680) and what it can mean for your home and job.
What it is
Bankruptcy is a legal way to deal with debts you can't pay. Most debts are written off, usually after a year, but your assets can be used to pay your creditors.
Cost
Applying online through GOV.UK costs £680. A creditor can also make you bankrupt if you owe them £5,000 or more.
What it can affect
Your home if you own it, a car worth more than a set amount, some jobs and roles, and your credit rating for six years. You may have to make payments from your income for up to three years.
Look at all your options
Bankruptcy is right for some people and not for others. A DRO, a debt management plan or an IVA might fit better. Get free advice before you decide.
Go step by step with Debt Confident
The app turns this into a plan: what to do first, what to say, and what to write. Free to download.
More guides
- Priority debts: which bills to pay first
- Breathing Space: 60 days' protection from creditors
- Debt Relief Orders (DROs): who can get one
- Bailiffs (enforcement agents): your rights
- Debt letters: what they mean and what to do
- How to make a budget that actually works
- Free debt advice: where to get it
General information for England and Wales, not regulated debt advice. Figures checked 21 September 2026. For advice about your situation, contact a free debt adviser.