Bankruptcy
What is Bankruptcy?
This is a formal solution available through the Courts. It allows you to address your debt problems by having your estate (your assets etc.) administered by a third party.
Bankruptcy usually last up to 12 months after which time you are then released from all your liabilities (subject to some limited exceptions). The third party will look to realise any assets you have (excluding certain exceptions such as household goods, etc.) and may ask that you make an affordable payment for 3 years to make a payment to creditors.
Bankruptcy is a serious step to take, and may not be the correct solution for some people, and so you should seek advice before you go down this route. For help and advice about bankruptcy, contact us, visit the Government website at www.insolvency.gov.uk or download the Insolvency Service "Guide to Bankruptcy" (PDF - 180Kb)