DROs and bankruptcy · 4 min read
How to go bankrupt in England and Wales: process, cost and consequences
How to apply for bankruptcy online, the £680 fee, what happens to your home, car and income, the restrictions you'll face, how bankruptcy stops bailiffs, and the alternatives to consider first.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 2 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
In England and Wales you apply for bankruptcy online through GOV.UK, and the fee is £680. An adjudicator decides your application. You’re usually discharged after 12 months, and most debts are written off, but your assets can be sold (including your share of your home), you may have to make income payments for up to three years, and there are restrictions. Check whether a free DRO or an IVA would suit you better first.
How to apply
- Get advice first. Make sure bankruptcy is right for you – free advice is available from MoneyHelper and debt charities.
- Gather information about your income, spending, assets and debts.
- Apply online on GOV.UK. You’ll complete an online form and pay the £680 fee. It can be paid in instalments online, but the application isn’t submitted until it’s paid in full.
- An adjudicator reviews your application, usually within 28 days, and either makes a bankruptcy order or refuses it.
- The Official Receiver contacts you and may interview you about your finances.
What happens to your things
| What happens | |
|---|---|
| Home | Your share of the equity is dealt with by the trustee. It may be sold, or a partner or relative may be able to buy it. If it hasn’t been dealt with within three years, it usually returns to you. |
| Car | You can usually keep a car you need, if it’s of reasonable value. A valuable car may be sold and replaced with a cheaper one. |
| Household goods | Essential items are protected. |
| Bank accounts | Your accounts may be frozen. Open a basic bank account. |
| Income | If you have spare income, you may have to make income payments for up to three years. |
| Pensions | Most approved pensions are protected. |
Restrictions
While you’re bankrupt (usually 12 months), you can’t, among other things:
- borrow more than £500 without telling the lender you’re bankrupt
- act as a company director without the court’s permission
- trade under a different name without telling people of your bankruptcy
Some professions have their own rules. If you’ve been dishonest or reckless, restrictions can be extended for up to 15 years.
Bankruptcy and bailiffs
Once a bankruptcy order is made, creditors with debts included in the bankruptcy generally can’t continue enforcement, including bailiff action. Some debts, such as magistrates’ court fines, child maintenance and student loans, aren’t written off.
Alternatives to consider first
- Debt Relief Order – free, if your debts are £50,000 or less and you have low income and few assets. See DRO vs bankruptcy.
- IVA – can protect your home if you have regular income. See IVA vs bankruptcy.
- Debt management plan – if you can repay in full over time.
Compare them all in debt solutions compared.
Frequently asked questions
How much does it cost to go bankrupt?
£680, made up of an adjudicator fee and a deposit for the Official Receiver’s costs.
How long does bankruptcy last?
You’re usually discharged after 12 months, but income payments can last up to three years, and the bankruptcy stays on your credit file for six years.
Will I lose my job if I go bankrupt?
Most people don’t, but some jobs, such as in certain financial, legal or public roles, have rules about bankruptcy. Check your employment contract and professional body.
Sources
- GOV.UK, Applying to become bankrupt
- Insolvency Service, Individual insolvency statistics
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
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