Being made bankrupt
1. When you can be made bankrupt
You can be made bankrupt if you:
- don’t pay your debts and you owe £5,000 or more
- break the terms of a Individual Voluntary Arrangement (IVA)
- gave information that wasn’t true to get an IVA
There’s a separate guide if you choose to declare yourself bankrupt.
Before you’re made bankrupt
Before you can be made bankrupt, the people you owe (your ‘creditors’) have to try other legal ways to get you to pay your debt. This is usually a statutory demand or a court judgment.
What happens if you’re made bankrupt
If you’re made bankrupt:
- your assets can be used to pay your debts
- you’ll have to follow bankruptcy restrictions
- your name and details will be published on the Individual Insolvency Register
If you’re being made bankrupt, you can get free advice:
- by calling National Debtline
- from online, face-to-face and phone services accredited by the Money Advice Service
- from Citizen’s Advice - you can read guidance or contact them
If you don’t want to be made bankrupt
You may be able to oppose your bankruptcy petition.