Bankruptcy UK — what does it mean for you?

Bankruptcy UK

Declaring bankruptcy in the UK is an effective approach to resolving debts you’re unable to pay.

What is bankruptcy?

This formal process is something that you declare through submitting your application to the Bankruptcy Adjudicator. It has three main features:

  • Your property and assets will be distributed fairly between your creditors based on the amount of debt you have with them
  • An appointed professional will handle your business affairs including financial matters
  • As an individual, you will be released from the majority of your debts after 12 months.

 Benefits of declaring bankruptcy in England


  • After a year you’re free to start your business life again
  • Any monies that you owe to a wide range of institutions including banks, government organisations, private companies, individuals, income tax and overpayments from certain benefit systems will all be dissolved after 12 months. There are exceptions to this process of ‘writing off’ which can be found here
  • Applying for bankruptcy means that a professional specialist — the Official Receiver or Trustee in Bankruptcy — is appointed to deal with your creditors, so you don’t have to. This bankruptcy help can free you of stress and anxiety.
  • The individuals and organisations you are in debt to (your creditors) can’t seek any other form of debt repayment from you unless your debts have been secured against your home or other property.
  • It’s even possible that you won’t have to sell a home against which debts have been secured, if a relative or friend can purchase your share of its value after the debts secured against it have been resolved.

Drawbacks of declaring bankruptcy in England

  • Some assets you possess — including your home and any vehicles — may be counted towards your bankruptcy estate and sold to provide your creditors with a debt payment.
  • For the period of your bankruptcy you will not be able obtain any form of credit (including personal loans, bank overdrafts, credit cards and other credit products) above£500 unless you reveal your bankruptcy when making the credit application.
  • Your credit rating will be adversely impacted and this negative impact remains for a five year period following your bankruptcy discharge. It is important to be clear that this period of adverse ranking starts at the end of your bankruptcy process, not the beginning.
  • Should you have any surplus income that permits you to make payments towards your bankruptcy (for example if you are left money) you may be compelled to make those payments for a period of three years.
  • Declaring bankruptcy means your personal information is listed on the Individual Insolvency Register. It will therefore appear in the London Gazette. Local newspapers may also list this information about you.
  • There are several professions that disbar bankrupts from practicing. Examples include but are not limited to: chartered accountancy, legal practices, financial advisory organisations, banks (at management level) and both the police service and the armed forces.


Declaring bankruptcy also means you are unable to promote, form or manage a Limited Company or serve as a Director of one, to become a Justice of the Peace, a school governor or a member of a Local authority, to take part in any business under a name other than the one declared on your bankruptcy order and finally, you are unable to become an insolvency practitioner.


Some people who go through the Bankruptcy process in England are given a Bankruptcy Restriction Order (BRO). Such orders run for anything from  2-15 years and are only applicable to individuals who are judged to have been dishonest, reckless or culpable (especially wrong or harmful) in the way they managed their finances. Where a bankrupt has committed fraud the Official Receiver and the Trustee in Bankruptcy are authorised to consider criminal proceedings.

UK bankruptcy assistance service

bankruptcy assistance

Our team offers advice and assistance with UK bankruptcy for clients from the EU such as Germany, Latvia, Lithuania and Sweden along with other EU Member States.

Our experts have assisted with successful petitions and our team are always on hand with bankruptcy help such as:

  • Advice about bankruptcy and other UK insolvency processes
  • Managing the relationship with creditors
  • Offer up-to date-information on EC Insolvency Regulation No:1346/2000
  • Assist with bankruptcy petition forms
  • Enable you to submit your online bankruptcy petition
  • Advice on answering any queries from the bankruptcy Adjudicator
  • Guide you in responding to information requests from the Official Receiver or Bankruptcy Trustee
  • Help you understandthe powers and responsibilities of those administering your bankruptcy
  • And answer any other questions you have during the 12 month bankruptcy period.


Ours is a cost effective service, focused on efficiency and discretion, that we will tailor to your personal needs.

You have questions?

Follow this link to ask us a question or book a consultation.