Personal Bankruptcy FAQs

Here you can find some Personal Bankruptcy FAQs we have compiled together. For more information, on an IVA, please don’t hesitate to contact us here!

*An IVA may not be suitable in all circumstances. Fees apply. Entering an IVA will affect your credit rating.

In England and Wales the total fee is £680. Which is made up of an application fee of £130 and a bankruptcy deposit of £550 you can only apply for bankruptcy online at

Bankruptcy applications (or petitions) are made at the High Court in London or at a county court near to where you live or trade.

If you have a significant amount of equity in your property the Official Receiver will need to realise this for creditors’. Where your family live with you a period of one year is allowed before any formal proceedings can be taken. It may be possible for your wife or a family member to negotiate to purchase your interest to avoid having to sell your home.

Any savings or other valuable assets will be recovered or sold. The following are not included as assets;

  • Household belongings such as bedding, clothing, furniture, television, other electrical goods and cutlery.
  • Tools, books and other items of equipment that you need for your job or business.

If you can show that you need your car for your business or job you should be able to retain it. If your car is considered to be of excessive value it may be necessary to sell this and replace it with a cheaper car.

  • You must not take credit of £500 or more without disclosing to the lender that you are subject to a bankruptcy order.
  • You cannot run a business in a different name without disclosing the name used under the bankruptcy.
  • You cannot be involved with the promotion, management or formation of a limited company, or become a director without getting permission of the court.
  • You may not hold certain public offices.

You will normally be discharged within 12 months of the bankruptcy or earlier if all enquiries have been completed. The Official Receiver or Trustee can apply to have the automatic discharge suspended if his enquiries are ongoing.

Personal Bankruptcy FAQs