Many people think of bankruptcy as a last resort, but it is a legal process that can provide relief for people who are struggling with debt.
There are different types of bankruptcy, and the process can be complex, so it is important to know what to expect before you file. This page will provide an overview of the reality of bankruptcy, so you can make an informed decision about whether it is the right choice for you.
Secure & confidential
Rated 4.6 Excellent
National Debt Advice is regulated by the Financial Conduct Authority to give Debt Counselling Advice to people who are struggling with debt.
To find out more about managing your money and getting free debt advice, visit Money Helper, an independent service set up to help people manage their money. National Debt Advice is not associated with Money Helper.
What is Bankruptcy?
Bankruptcy is a form of insolvency that writes off debts if you can't afford to repay them, giving you a fresh start. It's a legal process that's suitable if you have little hope of repaying your debts in a reasonable amount of time.
When you make yourself bankrupt, nearly all your unsecured debts are written off, which lets you make a fresh start. In some cases, your creditors can choose to make you bankrupt.
Benefits and Risks
Benefits of bankruptcy:
Your unsecured debts will be written off, giving you a fresh start
Your creditors can't take any further legal action against you to recover your debts
They must also stop demanding payment, charging interest and adding other charges
You won't receive any further contact from your creditors
Risks of bankruptcy:
Assets such as your home or vehicle may be included in your bankruptcy
Some jobs are affected, such as legal or financial roles
Bankruptcy will have a negative impact on your credit file and appear on it for six years
Your bankruptcy will be recorded on a public register
How do I apply for Bankruptcy?
Your first step is to collect details about your financial situation, including your income, outgoings and debts, our advisors can run through all of this with you.
Then you should see if bankruptcy is the right debt solution for you. Use our online calculator or speak to one of our expert advisors.
If we recommend bankruptcy, we'll give you information on how to apply, and explain the risks and benefits of going bankrupt.
Other debt solutions you could qualify for:
Why choose National Debt Advice?
We can reduce your monthly payments!* Not only that but we're:
An FCA Regulated Debt Counselling Service
Have a 24/7 Live Chat Support
Have excellent reviews on Trustpilot
We give impartial and confidential advice
*Monthly payments are based on individual financial circumstances.