Guidance

Guide to Bankruptcy

Full guidance on what happens when you're made bankrupt.

From:
The Insolvency Service
Published
15 October 2015
Last updated
31 January 2023 — See all updates

Applies to England and Wales

Documents

Guide to Bankruptcy

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Details

There’s a different guide if you are a creditor who has applied to bankrupt someone who owes you money

Bankruptcy is one way for individuals to deal with debts they can’t pay. It doesn’t apply to companies or partnerships.

This guide tells you how to apply to be made bankrupt and what happens when the bankruptcy order has been made. Contents include:

  • what bankruptcy means
  • who can be made bankrupt
  • costs
  • the process
  • what happens to your assets
  • payments from your income
  • when your bankruptcy will end
  • cancelling your bankruptcy (annulment)
  • advertising your bankruptcy
  • bankruptcy and transgender
  • how to complain
  • how we use and collect information

Becoming bankrupt is not the only way to deal with debt, look at the other options and seek debt advice before applying for bankruptcy.

Please Note

This guide provides general information only and is not a substitute for professional legal or financial advice.

Every effort has been made to ensure the information is accurate, but it should not be relied on as a full authoritative statement of the law. The Insolvency Service cannot accept any responsibility for any errors or omissions as result of negligence or otherwise.

Published 15 October 2015
Last updated 31 January 2023 + show all updates

  1. The amount allowed for the reasonable replacement of a motor vehicle has been increased from £1,250 to £2,000.

  2. 6.3 amendment to reflect that the IPA or IPO can be updated on income or spending changes 6.4 Removal of bullet point allowing a trustee to reduce or stop your payments if your income has gone down 7.1 replaced discharge email address with Insolvency Service online contact form

  3. Court fees and replacement car guid price updated

  4. DRO limit change

  5. Document updated at 2.1 to reflect exit from EU

  6. Clarification of the role of an Insolvency Practitioner

  7. Amendments relating to vehicles owned under finance agreements.

  8. Changed in line with the Insolvency (England and Wales) Rules 2016.

  9. Updates to advertising your bankruptcy and cancelling your bankruptcy.

  10. Updated to reflect new fees

  11. Change to what happens to my motor vehicle

  12. Amended to reflect new process for applying to make yourself bankrupt

  13. Correction to section 8.2 Insolvency register on annulment

  14. Updated to reflect statutory fee changes

  15. First published.

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