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Becoming bankrupt is one way to deal with debts you cannot pay. It means you could be free from most of your debts - there are some debts you might still have to pay, like child maintenance debts or student loans.

There are two ways you can be made bankrupt. You can:

• apply for bankruptcy yourself
• be made bankrupt when someone you owe money to applies for it

There are some things you will not be able to do when you鈥檙e bankrupt.

The things you own may be sold to pay for your bankruptcy and make payments towards your debts. This can sometimes include selling your home. It can also include other possessions if they are not essential and are worth a lot of money.

Your money and income might also be used to pay for your bankruptcy and make payments towards your debts if you do not need it all to live on. Find out what happens to your money and income if you鈥檙e made bankrupt.

You can get other types of help with clearing debt you cannot manage. Find out about other options for dealing with your debts.

Only individuals can become bankrupt. Find out what your options are if your limited company cannot pay its debts.

There are other options for dealing with your debts that do not restrict what you can do as much as bankruptcy does. Before you apply to become bankrupt, find out about other options for dealing with your debts.

How to apply

You can only apply online.

Apply for bankruptcy.

It costs 拢680. If you鈥檙e struggling to pay the fee, a charity may be able to help. Find out where to get free debt advice.

After you鈥檝e applied

Someone who works for the Insolvency Service (called an 鈥榓djudicator鈥�) will check if your application meets the requirements for bankruptcy.

They鈥檒l see if any other money could be used to pay your debts instead, for example your pension or savings. If you have access to other money and it covers your debts, the adjudicator might refuse to make you bankrupt.

If the adjudicator decides you can be made bankrupt, they鈥檒l accept your application and issue a bankruptcy order.

They鈥檒l then pass your case on to an 鈥榦fficial receiver鈥� who鈥檒l deal with your bankruptcy.

Your name will be added to the Land Charges register - lenders can search this register if you apply for a mortgage.

If you鈥檙e the sole owner of a property, HM Land Registry will add an entry to the register it holds for your property. This might mean you cannot sell your property.

Find out what happens after you鈥檝e become bankrupt.

How long it takes

You鈥檒l get an email or letter from the adjudicator within 28 days of submitting your application confirming whether you鈥檝e been made bankrupt. It can take longer if they need to ask you more questions.

If you鈥檝e changed your gender or name

If you鈥檝e changed your gender or name, you might have to include this on your bankruptcy application. The official receiver might need to tell other people your previous name if:

• they need to do that to protect or recover the things you own

• it will help people or organisations identify what you owe them

Someone you owe money to can apply to a court to make you bankrupt if you:

• do not pay your debts and you owe 拢5,000 or more
• break the terms of an Individual Voluntary Arrangement

Before you鈥檙e made bankrupt

Before you can be made bankrupt, the people or organisations you owe money to have to try other legal ways to get you to pay your debt. This is usually through a statutory demand or a court judgment.

Citizens Advice has guidance on what to do

You can challenge a statutory demand if you disagree with it.

When someone applies to make you bankrupt

1. The person who wants to make you bankrupt sends an application to the court, called a 鈥榖ankruptcy petition鈥�. They鈥檒l also give you a copy in person or post it to you.

2. The court sets a hearing date, at least 14 days after the person gave you the petition.

3. If the court makes you bankrupt at the hearing, they鈥檒l send a bankruptcy order to the 鈥榦fficial receiver鈥�, who鈥檒l deal with your bankruptcy.

Public records when a bankruptcy petition is filed against you

Your name will be added to the Land Charges register - lenders can search this register if you apply for a mortgage.

If you鈥檙e the sole owner of a property, HM Land Registry will add an entry to the register it holds for your property. This might mean you cannot sell your property.

At the court hearing

You can go to the court hearing.

The court can:

• make a bankruptcy order, which means you become bankrupt

• pause the petition (this is called 鈥榮taying鈥� the petition)

• dismiss the petition

• postpone (or 鈥榓djourn鈥�) the hearing

If you do not want to be made bankrupt

You can oppose a bankruptcy petition if you do not agree with it. You must do this at least 5 days before your bankruptcy hearing.

You do not have to pay a court fee to oppose a bankruptcy petition but you might have to pay costs if you鈥檙e not successful.

You can hire a solicitor to help. Check whether you鈥檙e eligible for legal aid.

Download and fill in form Bank 6 to oppose a bankruptcy petition.

Send the form to the court that sent you the bankruptcy petition. If it was the High Court Insolvency and Companies List, you can .

If it was a different court you鈥檒l need to submit the form by post. Find the address of the court that sent you the petition.

If you successfully oppose a bankruptcy petition, you must apply to both Land Charges and HM Land Registry to have your bankruptcy entry removed from their registers.

Apply to Land Charges

Send an application to cancel an entry in the Land Register (K11) to the Land Charges department.

You need to include:

• a copy of your court order permitting the cancellation (or 鈥榲acation鈥�) of the entry

• the correct fee for each entry you want to cancel

The address is on the application form.

Apply to HM Land Registry

You need to send HM Land Registry either:

• an application to change the register for a property, if you鈥檙e the sole owner of your property

• an application for the cancellation of a Form J restriction, if you own your property with someone else

You must include a copy of your court order.

The address to send it to is on the application forms.

Your documents will not be returned once the registers are updated. You can send copies if you write 鈥淚 certify that this is a true copy of the original鈥� and sign the document on the first page.

After you鈥檝e been made bankrupt

You鈥檒l receive a bankruptcy order. Find out what else happens after you鈥檝e become bankrupt.

You may be able to cancel your bankruptcy and stop it being published.

If you鈥檝e changed your gender or name

If someone else has made a bankruptcy petition against you but not noted your gender change, you must tell the person dealing with your bankruptcy (the 鈥榦fficial receiver鈥�).

When you鈥檙e made bankrupt, your name and address will be published in:

• the Individual Insolvency Register

If having your address published will put you at risk of violence, you can apply to the court for a person at risk of violence (PARV) order.

Your name will still be published, but your address will not be.

Apply for a PARV order

Download and fill in the form to apply for a PARV order.

If you鈥檙e applying to become bankrupt yourself

Apply for a PARV order after you鈥檝e started a bankruptcy application but before you submit it. You鈥檒l need to include your bankruptcy application reference number in your PARV application.

Take your completed form to your nearest court that deals with bankruptcy. They鈥檒l tell you if you need to pay a fee to apply. Find a court that deals with bankruptcy.

You鈥檒l have to go to a hearing to explain to a judge why you need to stop your address being published - the court will tell you when and where this will take place. You鈥檒l usually get a decision on the same day.

If someone is applying to make you bankrupt

Apply for a PARV order after the person has applied to the court and you鈥檝e received a 鈥榖ankruptcy petition鈥� but before the bankruptcy hearing.

You鈥檒l need to include the court鈥檚 bankruptcy reference number in your PARV application.

The court will consider the鈥�PARV鈥痮rder at your bankruptcy hearing. You鈥檒l have to go to it and explain to a judge why you need to stop your address being published. The court will tell you when and where this will take place.

You鈥檒l usually get a decision on the same day.

If you鈥檝e already been made bankrupt

Before your address is published, apply for an urgent court hearing to ask the judge for an order called a 鈥榮tay of advertisement鈥�. This stops your details from being published temporarily to give you time to apply for a PARV order.

Apply for a 鈥榮tay of advertisement鈥� to the court that made you bankrupt.

If you applied for bankruptcy yourself, find a court that deals with bankruptcy.

You鈥檒l need to tell the person dealing with your your bankruptcy immediately that you鈥檙e doing this (called the 鈥榦fficial receiver鈥�).

If your address has already been published

Contact the official receiver and tell them you鈥檝e applied for a PARV order (or are going to). Once you have a PARV order it may be possible to remove your address.

You鈥檒l receive a copy of the bankruptcy order. Your name and address will be published in and the Individual Insolvency Register.

You鈥檒l usually hear from the person dealing with your bankruptcy (the 鈥榦fficial receiver鈥�) within 2 weeks of getting your bankruptcy order. You鈥檒l get information about what you must do.

People who鈥檒l deal with your bankruptcy

The official receiver will usually deal with your bankruptcy from start to finish. They鈥檒l also be known as the 鈥榯rustee鈥�.

Sometimes, the people and organisations you owe money to can ask for a different trustee to take over dealing with your bankruptcy from the official receiver. You鈥檒l be told if this happens. You鈥檒l still need to give information to the official receiver if they ask you to.

What you must do

When the official receiver or trustee asks you, you must give them any information they ask you for. This can include:

• information about your finances, including any money you are owed
• a list of everything valuable you own

You must tell the official receiver or trustee immediately if:

• you鈥檙e running a business
• the things you own need protecting - for example because other people might claim them, or they鈥檙e at risk of damage or theft
• the things you own need to be made safe to protect others - for example a building you own is unsafe or you have hazardous substances

You must tell the official receiver or trustee about any change to your income or possessions during your bankruptcy, for example if you find out you鈥檙e coming into an inheritance.

If you do not give the official receiver or trustee the information they ask for

They can:

• ask you to go to court to explain why

• ask the court to delay the end of your bankruptcy so it lasts longer

What the official receiver does

罢丑别测鈥檒濒:

• check the information you give them about your debts, your finances and the things you own

• answer your questions about the bankruptcy process, if they can

The official receiver might want to interview you.鈥� If they do, the interview could take place over the phone, by video call or in person. They might:

• ask for more details, for example about your vehicles and bank accounts
• ask how and why you became bankrupt

The official receiver will send a report to the people and organisations you owe money to, including details of the things you own and your debts. This usually takes 4 weeks but can take up to 12.

While you鈥檙e bankrupt

There are some things you will not be able to do.

If your possessions are valuable, the trustee may sell them. This can include selling聽your home but only if you have equity in it.

The trustee will decide how much spare income you have. This will depend on how much of it you need to live on.

The trustee will use your spare income and the money from selling your valuable possessions to pay for your bankruptcy and to make payments towards your debts.聽

Find out what happens to your money and income if you鈥檙e made bankrupt.

When you鈥檙e bankrupt, you cannot:

• borrow more than 拢500 without telling the lender you鈥檙e bankrupt
• act as a director of a company without the court鈥檚 permission
• create, manage or promote a limited company without the court鈥檚 permission
• run a business without giving your name when you were made bankrupt to the people you do business with - as well as any business name you used

How long the restrictions last

Restrictions last until your bankruptcy ends or you successfully apply to cancel your bankruptcy.

When the restrictions can be extended

The person dealing with your bankruptcy (the 鈥榦fficial receiver鈥�) can get the time that you鈥檙e under these restrictions for extended if they believe you鈥檝e acted carelessly or dishonestly.

They鈥檒l ask you to agree to a bankruptcy restrictions undertaking to extend the restrictions. If you do not agree, they鈥檒l ask the court to make a bankruptcy restrictions order.

The person dealing with your bankruptcy (the 鈥榯rustee鈥�) might sell your family home, depending on how much equity would be left after any secured debts (like a mortgage) were paid.

If your equity is more than 拢1,000, the trustee can either:

• sell the property
• apply for a 鈥榗harging order鈥� - this fixes the amount the trustee will get from the property if you sell it later on

If the trustee has not started to deal with your family home within 3 years it will usually be transferred back to you.

If you鈥檙e the sole owner

The legal ownership of your home is transferred to the trustee, along with any equity.聽

A bankruptcy restriction is added to your property鈥檚 entry in the land register to say this.聽

You will not be able to sell your home.

If you own the property with someone else

Any equity you have in the property will be transferred to the trustee. You鈥檒l still own the property with the other person or people who are joint owners.

A 鈥楩orm J restriction鈥� is added to your property鈥檚 entry in the land register. This means the trustee will be told of any dealings connected with your home, for example if you try to sell it.

It can be removed if you can prove you do not have a share in the property, for example if your partner owns the property. The owner has to send HM Land Registry a signed statement saying they are not the bankrupt person and an application for the cancellation of a Form J restriction.

Stop or delay the sale of your home

You might be able to stop the sale of your home if the equity or legal title can be sold to someone else, such as a partner.

The sale can be delayed for up to 1 year if you need to organise somewhere for children or a partner to live.

Speak to your trustee to find out more about stopping or delaying the sale of your house.

Rented property

Your landlord might be told you鈥檙e bankrupt. It鈥檚 unlikely you鈥檒l be asked to move out of the property if you鈥檙e up to date with your rent.

The person dealing with your bankruptcy (the 鈥榯rustee鈥�) will decide if the things you own could be sold to pay your bankruptcy debts. If the trustee decides to sell the things you own, you must hand them over.

You can usually keep:

• things you need for your job, like tools or a vehicle
• essential household items, like clothing, bedding and furniture

You might have to give up these items, including vehicles, if they鈥檙e worth more than a reasonable replacement. Your trustee will either use the money from the sale to pay for a cheaper item or give you the money to buy one. Any money left will be used to pay for your bankruptcy and make payments towards your debts.

Vehicles

If you own a vehicle and other transport is not practical, you can usually keep it to:

• meet your household鈥檚 basic needs

• care for someone else, for example a disabled relative

• do your job

If you got your vehicle through a finance agreement

The rules are different if you got your vehicle through:

• hire purchase

• conditional sale

• a leasing agreement

If your vehicle is worth more than the amount left to pay on it, the trustee might sell it to pay for your bankruptcy and make payments towards your debts. They cannot replace your vehicle with a cheaper alternative.

If they do not sell it, they鈥檒l let you and the finance company know. The finance company could:

• take back the vehicle

• let you or another person take over the finance agreement

You must give the person dealing with your bankruptcy (the 鈥榯rustee鈥�) details of your income and spending, as well as your spouse鈥檚 or partner鈥檚. If you鈥檙e getting pension payments when you鈥檙e made bankrupt, those payments usually count as income.

The trustee will decide how much money you need to cover your expenses, including:

• rent or mortgage payments
• bills
• food
• clothing
• house insurance
• phone expenses
• vehicle expenses

If you have spare income

The trustee will tell you if they think you can make monthly payments from your spare income. You鈥檒l only have to do this if you and the trustee agree you can afford it. This arrangement can last for up to 3 years and is called an income payments agreement (IPA).

If you do not agree to the IPA

Your trustee can ask the court to order you to make monthly payments. This is called an income payments order (IPO).

If you hear from an agent about making payments

The trustee could use Advantis Credit Ltd or another agent to collect the payments from you.

You must respond if an agent contacts you.

If your income or spending changes

You must contact your trustee or Advantis Credit Ltd immediately if:

• you are having difficulty making payments
• your income or spending change - they can reduce or increase your payments
• you receive a lump sum - they can ask you to make a one off payment

If you do not make your payment

The trustee can:

• ask your employer to take the money directly from your wages
• make you bankrupt for longer (鈥榮uspend your discharge鈥� from bankruptcy)
• take legal action to get the money

Debts you鈥檒l still have to pay

When you鈥檙e bankrupt you must continue to pay:

• debts you have from fraud you鈥檝e carried out

• debts which were not included in the bankruptcy itself, for example to the Student Loans Company

• secured debts, like a mortgage if you continue to live in a mortgaged property

• money owed to the Department for Work and Pensions for budgeting or crisis loans

You might still have to pay:

• anything you owe under family proceedings, like child maintenance debts

• damages for personal injuries to anyone聽

You鈥檒l have to pay them unless the court decides you do not have to.

Your bank accounts

The bank will usually freeze your accounts.聽

Your trustee will tell your bank to let you have any money you need urgently from your account, for example to buy food.

If you have money that also belongs to someone else, for example in a joint account, their money will be given to them.

Your bank will decide whether you can carry on using your accounts. Ask your bank what to do with your bank cards, cheque books and credit cards for any accounts you鈥檙e no longer allowed to use.

Your bank can use money from your accounts to pay other debts you hold with them. This is called 鈥榮et off鈥�.

Your pension

After you鈥檝e been made bankrupt, you can usually keep any money you鈥檝e previously put into a UK pension.

Speak to your trustee or a debt advisor to find out how bankruptcy will affect your pension. Find out where you can get free debt advice.

Your business is very likely to be closed, unless the person dealing with your bankruptcy (the 鈥榯rustee鈥�) decides to keep it open.

You鈥檒l need to give a list of anything you own for the business to the trustee.

You can usually keep things you own for your business if you need them for employment, for example:

• vehicles

• 迟辞辞濒蝉听

• equipment

You might have to give them up if they鈥檙e worth more than a reasonable replacement.

Your employees can make a claim for unpaid wages and holiday pay, payment in place of notice and redundancy. They鈥檒l make this claim either:

• to the Redundancy Payments Service
• through the bankruptcy process

You can trade again but with restrictions on what you can do.

You can apply to cancel (鈥榓nnul鈥�) your bankruptcy if:

• the bankruptcy order should not have been made
• all your debts and bankruptcy fees have been paid or secured (guaranteed) by a third party - ask your trustee how much your bankruptcy fees are
• you鈥榲e made an Individual Voluntary Arrangement (IVA) to pay all or part of your debts

How to apply

Download and fill in form IAA.

Send or take your completed form to your nearest court that deals with bankruptcy. You can find a legal adviser to help you.

Check if you can get legal aid to help with your legal costs. If you鈥檙e eligible, Civil Legal Advice can give you advice.

You鈥檒l be given a date for a court hearing of your application, which you must attend.

You鈥檒l still need to co-operate with the official receiver or the trustee (the person dealing with your bankruptcy), for example by providing information or attending an interview.

If the court agrees with your application, they鈥檒l make an annulment order which cancels your bankruptcy.

Advertise your annulment order

You can ask the official receiver to publish details of your annulment. You must ask within 28 days of getting the annulment. You can only do this if your name and address have already been published to advertise the bankruptcy.

Details of your annulment order will be published wherever details of your bankruptcy order appeared.

After your bankruptcy is cancelled

When the court cancels the bankruptcy, all bankruptcy restrictions end immediately. You鈥檒l have to start making payments towards any debts you have left.

You鈥檒l get back possessions that the trustee did not sell.

Your bankruptcy will be removed from the Individual Insolvency Register after:

• 28 days if the bankruptcy order should not have been made
• 3 months if your debts have been paid in full or an IVA has been agreed

The notice in the Gazette is a permanent record of your bankruptcy but your details will be left out of internet search engine results after 1 year and 3 months.

You must apply to both Land Charges and HM Land Registry to have your bankruptcy entry removed from their registers.

Apply to Land Charges

Send an application to cancel an entry in the Land Register (K11) to the Land Charges department.

You need to include:

• a copy of your court order permitting the cancellation (or 鈥榲acation鈥�) of the entry

• the correct fee for each entry you want to cancel

The address is on the application form.

Apply to HM Land Registry

You need to send HM Land Registry either:

• an application to change the register for a property, if you鈥檙e the sole owner of your property

• an application for the cancellation of a Form J restriction, if you own your property with someone else

You must include a copy of your court order.

The address to send it to is on the application forms.

Your documents will not be returned once the registers are updated. You can send copies if you write 鈥淚 certify that this is a true copy of the original鈥� and sign the document on the first page.

After 12 months, you鈥檙e usually released (鈥榙ischarged鈥�) automatically from your bankruptcy restrictions and debts. It can take longer if you do not co-operate with the trustee (the person who鈥檚 dealing with your bankruptcy).

You must still pay debts that were not included in your bankruptcy until they鈥檙e paid off.

Check your discharge date online using the Individual Insolvency Register.

The official receiver or trustee will continue to deal with your bankruptcy after you鈥檙e discharged. This means they鈥檒l carry on selling your possessions that were included in the bankruptcy.

If you have an Income Payments Agreement (IPA) or Income Payments Order (IPO), you must keep paying it until it finishes, even after your bankruptcy has ended.

Prove your bankruptcy has ended

Email the Insolvency Service and ask for a letter confirming your bankruptcy has ended. There鈥檚 no fee.聽

If you were made bankrupt at a court

You can apply for a 鈥榗ertificate of discharge鈥� if you need further proof your bankruptcy has ended. Contact the court and pay the fee.

Public records of your bankruptcy

The Individual Insolvency Register is updated within 3 months of your discharge.

The notice in the Gazette is a permanent record of your bankruptcy but your details will be left out of internet search engine results after 1 year and 3 months.

Your name will usually be removed from the Land Charges register after 5 years - lenders can search this register if you apply for a mortgage.

The bankruptcy restriction will stay on HM Land Registry鈥檚 entry for any property you owned before the bankruptcy until the trustee has dealt with that property. When they鈥檝e dealt with the property, the trustee can remove the restriction.

Your credit record

Credit reference agencies will not be told directly when your bankruptcy ends - they鈥檒l get this information from public records.

Get a copy of your - contact a credit reference agency if it needs updating.

Your bankruptcy can stay on your credit reference file for 6 years from the date of your bankruptcy.