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National Debtline

Advice you can trust


If you cannot afford the payments to your creditors or your assets are worth less than your total debts, you are likely to be insolvent. Bankruptcy may be a suitable option for you. Get debt advice about the advantages and disadvantages of all your options before deciding which option to take.

bankruptcy advice - woman in autumn

Your budget

  • Don't forget that you need to work out a budget before you tackle your debt problems.
  • After you have worked out your income and outgoings you will be able to see how much you have left over.
  • If you do not have enough spare income to pay your creditors, bankruptcy could be suitable for you.

What is bankruptcy?

  • Bankruptcy is a way of ending your liability for debts that you cannot pay.
  • Any assets that you own may be sold to raise money to pay to your creditors.
  • After a year, debts included in your bankruptcy are written off and you can make a fresh start.
  • There are advantages and disadvantages to bankruptcy that you need to consider carefully.

Bankruptcy process

There are different stages involved in the bankruptcy process.

Before going bankrupt, get free and confidential advice on the advantages and disadvantages of bankruptcy.

You also need to understand how to apply. It is essential to complete the forms fully and correctly.

You are usually bankrupt for one year. During bankruptcy you are under certain restrictions, and you need to co-operate with the person

who is in charge of your case.

After one year, you will usually be discharged. This is the end of your bankruptcy period and it usually means that the debts included in your bankruptcy are written off. However, some effects of bankruptcy can continue even after discharge.

Contact us for advice about the stages in the bankruptcy process. We can help you to understand how they may apply in your situation.


Other debt options

There may be a number of different options that you could consider to deal with your debts.

Get advice on all these options before deciding to apply for bankruptcy.

We have further information that can help you to compare all the different options available to you.

Be very careful about organisations that will charge you a fee to give you advice about bankruptcy. You can get free, impartial and confidential advice from many different money advice agencies. Contact us for advice.