Bankruptcy

✅ Write off 100% of your debt

✅ No monthly payments

✅ Stops bailiffs & legal action

What is Bankruptcy?

Bankruptcy is a formal insolvency solution that means your outstanding debts are written off. It is available to people living in England, Wales and Northern Ireland. The equivalent for people living in Scotland is called Sequestration.



Bankruptcy is typically viewed as a last resort. It’s a legally binding solution and is intended for those who can’t repay their debts using income or assets in a reasonable period of time.

Bankruptcy Advantages

  • Wipes away all unsecured debts, allowing you to start over
  • Stops creditors from taking legal action
  • You will be left with enough money after repayments to live on

Bankruptcy Disadvantages

  • Your possessions, such as your car and house, may be repossessed
  • There is an initial fee to pay
  • Your bankruptcy will be placed on a public record in the Bankruptcy Insolvency Register
  • Your credit rating will be negatively impacted for 6 years

DMP FAQs

  • Am I eligible for Bankruptcy?

    There are set requirements to be considered for bankruptcy. These include:

    • Being a resident of England, Wales, or Northern Ireland
    • Having no reasonable way to repay your debts through other methods
    • Be able to pay an initial fee of £680 (this can be paid in instalments)
    • No possibility of being able to repay your debts in the future
    • No spare income that could be used in another debt solution such as an Individual Voluntary Arrangement (IVA)

  • What debts can’t be included in Bankruptcy?

    Though bankruptcy typically includes most unsecured debts, there are some exceptions that will not be written off when you are declared bankrupt, such as:


    • Student loans
    • Social fund loan
    • Debts taken out fraudulently
    • TV license arrears
    • Magistrate court fines
    • Debts taken out after you declared bankruptcy
    • Child maintenance arrears
    • It’s important to be aware that a DRO will have implications in terms of your credit score and your ability to take out future credit agreements.

  • Will filing for Bankruptcy stop bailiffs?

    Once you have been delcared bankrupt, you’re granted legal protection and your creditors can’t contact you directly. Because of this, any use of bailiffs or other attempts to recover money you owe must cease while you are under your bankruptcy agreement.

  • What restrictions will I have during Bankruptcy?

    During bankruptcy there a number of restrictions placed upon you that you must adhere to, these include:


    • Borrowing over £500 without disclosing your current bankrupt status
    • Being excluded from certain jobs, such as Insolvency Practitioner, Consumer Credit license holder, Charity Trustee
    • Being a company director or running a company without a court permission
    • Rebranding if you are self-employed or without disclosing your bankruptcy to the people you do business with
    • Buying a house under a right-to-buy scheme

  • Are you seeking Bankruptcy and wish to know more?

    That’s where our advisors come in, our expert advice team can help you find the debt solution that works for you. If you feel you may qualify for Bankruptcy, give us a call and we will help you work it out.


    At Be Debt Free we understand that every financial situation is different, and approach every customer with the care and individuality that they deserve.


    So, get in touch today and start living better with Be Debt Free.