England, Wales & NI
Bankruptcy
Formal insolvency with serious consequences, usually discharged after twelve months.
- Typical term
- Usually discharged after 12 months
- Type
- Formal insolvency
- Available in
- England, Wales & NI
What it is
Bankruptcy writes off most unsecured debts, but assets of value — potentially including your home — can be sold to pay creditors. It is a genuine fresh start for some people and the wrong answer for others.
Who it tends to suit
- There is no realistic prospect of repaying what you owe
- You have few assets worth protecting
- Other routes have been ruled out
Benefits
- Most unsecured debts cleared at discharge
- Creditor action and contact stops
- A defined end point, normally twelve months
Things to weigh up
- Your home and other valuable assets may be sold
- An income payments arrangement can last three years
- Published on the Individual Insolvency Register
- Restrictions apply to some jobs and to acting as a company director
If you own your home
Property equity usually forms part of the estate. Take advice before applying if you own your home.
Not sure this is the right fit?
The finder compares this against every other UK route based on where you live and what you owe.
Compare my optionsMay not be suitable in all circumstances. Fees apply and your credit rating may be affected. Arcadia is an information service — always consider free, independent advice before deciding.