Bankruptcy is a legally binding debt solution that’s often used as a last resort if you cannot repay your debts in a reasonable amount of time.
Bankruptcy is available to those living in England, Wales and Northern Ireland. It is a formal insolvency process whereby your debts are written off. You can apply for bankruptcy if you owe a minimum of £5000 but will have to pay a fee of £680 when you apply through the high court.
You can put all your unsecured debts into your application for bankruptcy, including mortgages, however you will have to surrender your home. Once you enter into bankruptcy, the companies you owe money to are no longer allowed to contact you or take further or legal action against you.
Bankruptcy typically lasts up to a year, and at the end, any remaining debt you have is written off. Your bankruptcy will be put on public record and can affect your working opportunities.