Guide to Bankruptcy
Full guidance on what happens when you're made bankrupt.
Applies to England and Wales
Documents
Details
There’s a different guide if you are a creditor who has applied to bankrupt someone who owes you money
Bankruptcy is one way for individuals to deal with debts they can’t pay. It doesn’t apply to companies or partnerships.
This guide tells you how to apply to be made bankrupt and what happens when the bankruptcy order has been made. Contents include:
- what bankruptcy means
- who can be made bankrupt
- costs
- the process
- what happens to your assets
- payments from your income
- when your bankruptcy will end
- cancelling your bankruptcy (annulment)
- advertising your bankruptcy
- bankruptcy and transgender
- how to complain
- how we use and collect information
Please Note
This guide provides general information only and is not a substitute for professional legal or financial advice.
Every effort has been made to ensure the information is accurate, but it should not be relied on as a full authoritative statement of the law. The Insolvency Service cannot accept any responsibility for any errors or omissions as result of negligence or otherwise.
Updates to this page
Last updated 28 June 2024 + show all updates
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Guidance has been updated in line with the DRO threshold increase from £30,000 to £50,000. The single vehicle value has also been increased from £2,000 to £3,250 - in line with the new value for Bankruptcy.
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The amount allowed for the reasonable replacement of a motor vehicle has been increased from £1,250 to £2,000.
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6.3 amendment to reflect that the IPA or IPO can be updated on income or spending changes 6.4 Removal of bullet point allowing a trustee to reduce or stop your payments if your income has gone down 7.1 replaced discharge email address with Insolvency Service online contact form
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Court fees and replacement car guid price updated
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DRO limit change
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Document updated at 2.1 to reflect exit from EU
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Clarification of the role of an Insolvency Practitioner
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Amendments relating to vehicles owned under finance agreements.
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Changed in line with the Insolvency (England and Wales) Rules 2016.
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Updates to advertising your bankruptcy and cancelling your bankruptcy.
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Updated to reflect new fees
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Change to what happens to my motor vehicle
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Amended to reflect new process for applying to make yourself bankrupt
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Correction to section 8.2 Insolvency register on annulment
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Updated to reflect statutory fee changes
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First published.