Bankruptcy
A legal process that clears most of your debts when you can’t repay them, but with restrictions and the possible loss of some assets. We help people in Leeds, Sheffield, Bradford and across Yorkshire and the UK.
Please note: this page is a brief, general overview to help you understand your options. It doesn’t cover every detail or every possible route, and it isn’t legal or financial advice. Every situation is different, so please talk to us before making any decisions.
In short: a legal process that clears most of your debts when you can’t repay them, but with restrictions and the possible loss of some assets.
Bankruptcy can give you a fresh start if you have no realistic way of repaying your debts. You can apply yourself online through GOV.UK, or a creditor owed £5,000 or more can ask the court to make you bankrupt.
What happens
- Your assets, apart from everyday essentials, pass to the Official Receiver, a government official, or to a trustee who is a licensed insolvency practitioner.
- They sell what can be sold and share the money among your creditors.
- If your income is more than you need to live on, you may have to make monthly payments for up to three years.
- You’re usually released from most of your debts after 12 months. This is called discharge.
Things to know
- While you’re bankrupt, you can’t borrow more than £500 without telling the lender you’re bankrupt.
- You can’t be a company director, or set up or run a company, without the court’s permission.
- If you trade under a different name, you must tell the people you do business with that you’re bankrupt.
- If you own your home, your share of it may have to be sold, even after you’ve been discharged.
- You must co-operate fully and honestly with the Official Receiver or trustee. If you don’t, or if you’ve acted dishonestly, your restrictions can be extended for up to 15 years.
- Bankruptcy stays on your credit file for six years, and there’s a fee to apply. You can check the current fee on GOV.UK.
Other options
Bankruptcy isn’t right for everyone. These are the other personal insolvency options, or you can compare them all.
What our clients say
Facing my financial position was overwhelming, but Conselia provided me with clear guidance and support. They were professional, approachable, and always explained the process in a way I could understand. Thanks to their expertise, I was able to regain control of my finances and start fresh. Highly recommended!
IVA client
I can’t thank Conselia enough for helping me through such a difficult period. Their team was understanding and completely non-judgmental, providing solutions tailored to my situation. They made what felt like an impossible challenge manageable.
IVA client
From our first conversation, Conselia made me feel reassured and in safe hands. They handled everything efficiently and were transparent about every step. I now have peace of mind and a clear path forward, and I’m so grateful for their support.
Company director
Dealing with insolvency is never easy, but Conselia turned a stressful situation into a manageable process.
Company director
I was hesitant to seek help, but Conselia put my mind at ease right away. Their professionalism, knowledge, and understanding were second to none.
Company director
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