Bankruptcy in 2026: the complete UK guide

Bankruptcy has a reputation that's worse than the reality. For many people, it's the fastest route to a fresh start.

What happens when you go bankrupt?

You apply online (or through the court). A trustee is appointed to manage your finances. Most debts are written off after **12 months**. During that year, there are restrictions — but they're often less severe than people expect.

What it costs

The application fee is **£680**. You can save up for this, or some charities may help. There are no other compulsory costs.

What debts it clears

What debts survive

Impact on your life

During bankruptcy (12 months):

After bankruptcy:

Is bankruptcy right for you?

Generally yes if:

Get free advice from StepChange (0800 138 1111) or National Debtline (0808 808 4000) before deciding.