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What is Bankruptcy?

Bankruptcy is a way of legally declaring your inability to pay your creditors. In Bankruptcy you usually stop paying your creditors. Your creditors cannot chase you for the outstanding debt.

If you feel your debts are completely unmanageable Bankruptcy could be your best option. Before going bankrupt it is important that you understand all the options available to you. Bankruptcy can have a serious impact on your future and even your job so it is important to get the right advice and information.

How to go Bankrupt

There are two ways to go Bankrupt in the UK.

1. You can petition for your own bankruptcy which is known as a 'debtors petition'.

2. A creditor who you owe more than £5,000 to, can petition for your bankruptcy. This is known as a 'creditors petition'.

Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due.

When your debts seem totally out of control, so much so that you will never pay them off, bankruptcy can take away all the stress of making debt payments.

Although bankruptcy has a perceived stigma and is publicly advertised, it should always be considered when dealing with insolvency matters.

It can provide a real fresh start for debts that will never be repaid.

Bankruptcy Advantages

  • Bankruptcy could write off all your debt (exceptions listed below) and leave you debt free within 12 months.
  • Creditor harassment stops with immediate effect as you no longer have to deal with them.
  • If you are living in rented accommodation you will be allowed to stay there (providing you maintain payments).
  • If you require your car to travel to and from place of work then this will be deemed acceptable (usually up to the value of approx £1,000).
  • It allows you to make a fresh start.

Bankruptcy Disadvantages

  • Assets may be sold in order to address any equitable value (where applicable).
  • Some debts cannot be written off such as student loans, court fines, overpayment of benefits and child support.
  • You are not allowed to obtain credit in excess of £650 without first disclosing your bankruptcy.
  • You cannot hold position of company director.
  • You cannot trade in any business under any other name.
  • Bankruptcy can have implications on certain professions:
    You may not practice as a Chartered Accountant / Lawyer
    You may not become a Member of Parliament
    You may not act as a Justice of the Peace
    You may not become a member of the local authority
  • A record of the bankruptcy will remain on your credit file for six years. It will also be recorded on the Insolvency register.
  • Any surplus income in excess of £20 is likely to be requested in an Income Payments Order which would have to be paid to the Official Receiver each month for 3 years.



Bankruptcy Enquiry


Your Total Debt (approx) Name Telephone / Mobile Number Email Message

Fees and key info


We are happy to provide you with debt advice only. We only charge a fee if you opt for one of our debt solutions. Fees will depend on which debt solution we provide and what your personal circumstances are. All fees will be discussed prior to commencement of any service or debt repayment plan.

Click here to read our fees and key info

Please note: From time to time we may refer you to other services providers or charities such as the CAB.

Money Advice Service


You can get free debt advice from the Money Advice Service – an organisation set up by the Government to offer free and impartial advice to those in debt. Click here for more information.

Client Review

Can't thank you enough

Star rating : 5/5

Before things got out of hand I decided after reading other reviews to contact National Debt Relief for advice. An extremely helpful team discussed my options and explained how things would work. I was starting to get numerous calls and letters from creditors looking for full repayments on my loans but given the nature of the pay cut I received this was no longer possible.

After I contacted National Debt Relief and agreed a payment plan to repay my loans in a restructured way my life changed. No more calls, texts or letters from creditors demanding money. And that was all down to the negotiation skills of the team of fantastic staff at NDR. I'm forever grateful .. So if ur in the same situation, I would advise that you pick up the phone and take the first steps.

Written on 18/04/2013,
Review Centre

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