A range of options for those facing financial hardship.


An option for sorting out your debt problems might be bankruptcy. You can apply for bankruptcy if you cannot pay back your debts.

As well as applying for bankruptcy yourself, someone else you owe money to (a creditor) can apply to make you bankrupt, even if you don’t want them to. For a creditor to make you bankrupt, you must owe at least £5,000.  You can apply to be made bankrupt online.


There is a one off payment of £680 if you apply yourself. 

Advantages of going bankrupt

When the bankruptcy order is over you can make a fresh start - in many cases this can be after a year. Other advantages of going bankrupt include:

  • you no longer have to deal with your creditors

  • you are allowed to keep household goods and a reasonable amount to live on

  • creditors have to stop most types of court action to get their money back following a bankruptcy order

  • the money you owe will be written off once your bankruptcy ends

Disadvantages of going bankrupt

  • if you have surplus disposable income, you may be asked to make payments towards your debts for a period of 3 years

  • it will be more difficult to take out credit while you are bankrupt and your credit rating will be affected for 6 years

  • if you own your home and you cannot raise sufficient equity, the property might have to be sold

  • some of your possessions might have to be sold, for example, your car if it has a high value (over £3,000) and any luxury items you own

  • it may affect your employment, subject to your contract of employment

  • if you own a business, bankruptcy may have severe consequences

  • going bankrupt can affect future applications regarding immigration status

  • your bankruptcy will be published on the Individual Insolvency Register

What happens at the end of bankruptcy?

Your bankruptcy will normally end after a year. The Official Receiver will tell you when it is over. Most debts that haven’t been paid will be written off although some debts like court fines and Student Loans can never be written off.

In extreme cases the Official Receiver may apply for a Bankruptcy Restriction Order.  This can last up to 15 years and will restrict your financial affairs. This order could be made if, for example, you do not co-operate with the Official Receiver, or you take on debts knowing that you won’t be able to pay them back.

Public record

Your bankruptcy will be added to the Individual Insolvency Register. This is a public record.  The record is removed after the bankruptcy ends. Your bankruptcy will stay on your credit record for at least 6 years.

Call us today to speak with one of our advisors who can help you understand your options and find out the right choice for you. We're here to help on 0800 019 8383.


Find out the right choice for you.

Call us today to speak with one of our advisors who can help you understand your options and find out the right choice for you. We're here to help on 0800 019 8383 .

Opening times

Monday - Thursday: 8:00am - 6:00pm Friday: 8:00am - 5:30pm

Saturday: 9:00am - 2:00pm

Sunday: Closed

Vanguard Insolvency Practitioners Limited, Registered address National House, 80-82 Wellington Road North, Stockport, Cheshire SK4 1HW

Company Registered in England and Wales Number 09610770 - Data Protection ZA 131723

Peter Jackson is authorised to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association. Data protection registration number ZA103596

The Money Advice Service is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. The Insolvency Service, an independent government agency, has produced a guidance leaflet on dealing with your creditors. If you would like a copy, click here.

The Association of Business Recovery Professionals, known as R3, produce a booklet called “Is a Voluntary Arrangement Right for Me?”.  If you would like a copy, click here.

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