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Finding out if bankruptcy is the right option for you will depend on lots of different factors...

Bankruptcy may be right for you if:

You live in England, Wales or Northern Ireland (In Scotland, the process is called sequestration)

Your debts are so unmanageable you could never realistically pay them off

Bankruptcy is offered subject to eligibility and acceptance, alternative solutions may be offered. Fees may be payable if continuing services are provided.

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We’ll listen to make sure we understand your situation; and then we can make a recommendation based on what you’ve told us – and we’ll be with you every step of the way.

Bankruptcy is offered subject to eligibility and acceptance, alternative solutions may be offered. Fees may be payable if continuing services are provided.

Bankruptcy explained

Bankruptcy is a type of insolvency that provides relief and a fresh start from unmanageable debts for people who will just never be able to pay back what they owe in a reasonable time.

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During bankruptcy, the Official Receiver is appointed to administer the process. The Official Receiver will look at your circumstances to decide what, if anything, you can afford to pay towards your debt. Your lenders will deal only with the Official Receiver in relation to your debt.

If you have any money left over after you’ve paid all your essential living costs, you will be expected to make affordable repayments towards your debt. And any property you own (including your home if you have equity in it) may be sold and used to pay back what you owe although you can keep certain “essential” items like household goods or tools for work.

When you are discharged from bankruptcy – normally after 12 months - your outstanding unsecured debt is written off.

Learn more about bankruptcy in our guide here.

What will happen during bankruptcy?

Bankruptcy could help you deal with unaffordable debt, but there are other consequences too.

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1. Bankruptcy can seriously affect your credit rating. It will show up on your credit file for six years and you may be asked in future applications for credit or employment if you have ever been bankrupt

2. If you do find a lender willing to offer you credit before you are discharged, you can't borrow more than £500 without telling them you have been made bankrupt

3. Your employment opportunities may be affected and certain jobs (such as director of a company) are also ruled out during bankruptcy

4. Records of the bankruptcy will appear on the Individual Insolvency Register until three years after it has ended

5. If you're a homeowner, with equity in your property, it could be sold to help cover what you owe

6. Any non-essential assets that you own may also have to be sold

Fees are explained here

Want to know if bankruptcy is the right solution for you?

Talk to us, there are lots of different ways in which we can help and we’ll always make sure we’ve considered all the options before you sign up to anything. If bankruptcy is right for you, we’ll support you every step of the way.