How do I apply for bankruptcy in England and Wales?

You apply online only, through the GOV.UK service, and the fee is £680. You can save your application and come back to it, and pay the fee in instalments, but you can't submit it until the full £680 is paid. An 'adjudicator' at the Insolvency Service then checks your application — usually a decision within 28 days. If they accept it, they make a bankruptcy order and pass your case to an official receiver. Always get free debt advice first, because a Debt Relief Order may be cheaper or free if you qualify.

How long does bankruptcy last?

You're usually freed from bankruptcy — 'discharged' — after 12 months. That ends the bankruptcy restrictions and releases you from most of the debts you had when the order was made. Some effects last longer: bankruptcy stays on your credit file for 6 years and on the public Individual Insolvency Register, and if you have spare income you may have to make payments for up to 3 years under an income payments agreement.

Will I lose my home and possessions if I go bankrupt?

If you own your home and it has equity, you may lose it — the trustee can sell it to release your share for your creditors, though there are protections and timescales. You must keep paying your mortgage and any debts secured on the home; bankruptcy doesn't stop a lender repossessing for those. Everyday household items and reasonable tools for your job are usually protected, but valuable assets and a car worth more than is reasonable can be taken.

Which debts are not cleared by bankruptcy?

Most unsecured debts — credit cards, loans, overdrafts, most catalogue and council tax arrears — are included and written off at discharge. But some debts are NOT included and you must keep paying them: student loans, court fines, penalties for fraud, and child maintenance or child support. Debts secured on your home (like the mortgage) and most debts run up by fraud are also excluded.

Is bankruptcy or a Debt Relief Order better?

It depends on your debts, assets and income. A Debt Relief Order (DRO) is now free and may suit you if your debts are under £50,000, your assets are under £2,000 (one vehicle up to £4,000 ignored) and your spare income is £75 a month or less. Bankruptcy costs £680 but has no debt limit and can be right if you own a home, have higher debts or don't qualify for a DRO. Free debt advice will tell you which fits — never decide alone.

Bankruptcy in England & Wales: the £680 fee

What bankruptcy actually is

Bankruptcy is a formal way of dealing with debts you cannot pay. When the bankruptcy order is made, control of your money and most of your assets passes to an official receiver (or a trustee), who deals with your creditors for you:

Most of your unsecured debts are included — credit cards, loans, overdrafts, catalogues, most council tax arrears.
Your creditors can’t take further action or chase you for those debts once the order is made.
You’re usually discharged after 12 months, and the debts included are written off — even if they aren’t fully paid.

Why people choose it Bankruptcy can wipe out debts you could never realistically clear and stop the constant pressure, giving you a clean start in about a year. For someone with little to lose and no way to pay, it can be the kindest option there is.

How you apply — online, for £680

In England and Wales you apply for your own bankruptcy online only, through the GOV.UK service. The fee is £680. You can start the application, save it and come back to it, and pay the fee in instalments — but you can’t submit it until the full £680 is paid.

An adjudicator at the Insolvency Service checks your application — usually a decision within 28 days (longer if they need to ask you questions).
If they accept it, they make a bankruptcy order and pass your case to an official receiver.
You’ll be asked about your income, assets and debts, and must co-operate with the official receiver throughout.

Can’t afford the £680? You can pay it in instalments before you submit, and some debt charities and local funds may be able to help. A free adviser can also check whether a Debt Relief Order — which costs nothing — fits you instead. Never pay a private company a fee to “arrange” your bankruptcy: the official route is GOV.UK.

What happens to your home, assets and income

What	What can happen
Your home	If you own it and there’s equity, it can be sold to release your share for creditors (there are protections and timescales). You must keep paying the mortgage — bankruptcy doesn’t stop repossession for secured debts.
Your things	Everyday household items and reasonable tools for your job are usually protected. Valuable items, savings and a car worth more than is reasonable can be taken.
Your income	If you have spare income, you may have to pay it for up to 3 years under an income payments agreement (IPA) — but only if you and the trustee agree you can afford it (or a court orders it).

This is the big trade-off Bankruptcy can cost you a home with equity, where a Debt Relief Order or an IVA might protect it. If you’re a homeowner, get advice before you apply — it really matters which solution you choose.

Debts it does not clear — and the rules while bankrupt

Most unsecured debts are written off, but some are not included and you must keep paying them:

Student loans, court fines, penalties for fraud, and child maintenance / child support.
Debts secured on your home (your mortgage) and most debts run up by fraud.

While you’re bankrupt there are also restrictions:

You must tell a lender you’re bankrupt if you want to borrow £500 or more.
You can’t act as a company director, or form or manage a company, without the court’s permission.
You can’t trade under a different business name without telling people you’re bankrupt.
Bankruptcy is recorded on the public Individual Insolvency Register and stays on your credit file for 6 years.

Check the cheaper options first — a DRO can be free

Bankruptcy is not the only formal debt solution, and it’s often not the cheapest. Before you pay £680, it’s worth knowing:

Option	Who it can suit
Debt Relief Order	Free. Debts under £50,000, assets under £2,000 (one vehicle up to £4,000 ignored), spare income £75/month or less. Often the better route if you have little to lose.
IVA	You can pay something each month and want to protect assets like a home. Run by a fee-charging insolvency practitioner over 5–6 years.
Breathing Space	You need 60 days’ legal protection — interest and action frozen — while you get advice and decide.
Debt management plan	You can clear the debts in a reasonable time with a single affordable payment and a bit of help.

The honest answer to “which one?” always comes from free, impartial advice on your whole situation — not from a cold-caller who profits from signing you up.

Do this now

Before you apply or pay anything, make one free call — StepChange 0800 138 1111 or National Debtline 0808 808 4000 (or Citizens Advice). Ask them to compare bankruptcy, a Debt Relief Order and an IVA for your exact situation.

If creditors or bailiffs are piling on right now, you can press pause with Breathing Space and check your rights while you decide.

Scotland & Northern Ireland This guide is for England & Wales. In Scotland bankruptcy is called sequestration, applied for through the Accountant in Bankruptcy (with a low-cost Minimal Asset Process route for people with little income or assets). Northern Ireland has its own process and fees. A free adviser or Citizens Advice can point you to the right one.

Want free, impartial help comparing your debt options? Get free debt help →

Source verification Primary source GOV.UK — Apply for bankruptcy / Becoming bankrupt; Citizens Advice and National Debtline bankruptcy guides.
Specific URL gov.uk/apply-for-bankruptcy
Last verified 15 June 2026 (the £680 fee, online-only application via the adjudicator, ~28-day decision and 12-month discharge web-checked against GOV.UK).
Confidence High on the framework — bankruptcy runs under the Insolvency Act 1986: apply online for £680, an Insolvency Service adjudicator decides (usually within 28 days), an official receiver/trustee deals with your assets, you’re usually discharged after 12 months, spare income can fund an income payments agreement for up to 3 years, and it stays 6 years on your credit file and the Individual Insolvency Register.
Key facts £680 fee (instalments allowed) · online only via the adjudicator · ~28-day decision · most unsecured debt written off · home with equity can be sold · IPA up to 3 years · student loans, court fines, fraud penalties & child maintenance NOT included · discharged ~12 months · 6 years on credit file + public register · DRO (free) may fit instead · England & Wales (Scotland = sequestration).
Scope England & Wales. Not financial advice — get free, impartial debt advice (StepChange, National Debtline, Citizens Advice) before applying.

Bankruptcy — common questions

How do I apply for bankruptcy?

Online only, through GOV.UK, for £680. You can save your application and pay the fee in instalments, but can’t submit until it’s fully paid. An adjudicator at the Insolvency Service decides — usually within 28 days — and if accepted makes a bankruptcy order. Get free debt advice first; a Debt Relief Order may be free if you qualify.

How long does it last?

You’re usually discharged after 12 months, which releases you from most of the debts you had at the start. But it stays on your credit file for 6 years and the public register, and you may pay spare income for up to 3 years under an income payments agreement.

Will I lose my home?

If you own it and there’s equity, it can be sold to release your share for creditors (with protections and timescales). You must keep paying the mortgage — bankruptcy doesn’t stop repossession for secured debts. If you’re a homeowner, get advice before applying, as a DRO or IVA may protect the home.

Which debts aren’t cleared?

Most unsecured debts are written off, but student loans, court fines, penalties for fraud and child maintenance are not included — you keep paying them. Debts secured on your home (the mortgage) are also excluded.

Is a Debt Relief Order better than bankruptcy?

It can be — and it’s free. A DRO may suit you if your debts are under £50,000, your assets under £2,000 (one vehicle up to £4,000 ignored) and your spare income is £75/month or less. Bankruptcy costs £680 but has no debt limit. Free advice will tell you which fits.

Related guides Debt Relief Order · IVA explained · Breathing Space · Free debt help · Bailiffs & your rights

Sources: How to apply, the £680 fee, the adjudicator, what happens to your home, assets and income, and the 12-month discharge · GOV.UK — Apply for bankruptcy and GOV.UK — Becoming bankrupt. Which debts are included, and choosing between solutions · Citizens Advice and National Debtline. Free debt advice · StepChange. SortedUK is not a regulated adviser and this is general information — get free, impartial debt advice before acting. Last reviewed: 15 June 2026.

Going bankrupt clears most debt — but check the cheaper option first.