Being made bankrupt
Printable version
1. When you can be made bankrupt
You can be made bankrupt if you:
- do not pay your debts and you owe £5,000 or more
- break the terms of a Individual Voluntary Arrangement (IVA)
- gave information that wasn’t true to get an IVA
There’s a separate guide if you choose to declare yourself bankrupt.
Before you’re made bankrupt
Before you can be made bankrupt, the people you owe (your ‘creditors’) have to try other legal ways to get you to pay your debt. This is usually a statutory demand or a court judgment.
Citizen’s Advice has guidance on what to do if you’re sent a statutory demand. You can decide to challenge a statutory demand if you disagree with it.
What happens if you’re made bankrupt
If you’re made bankrupt:
- your assets can be used to pay your debts
- you’ll have to follow bankruptcy restrictions
- your name and details will be published on the Individual Insolvency Register
Getting help
If you’re being made bankrupt, you can get free advice:
- by calling National Debtline
- from online, face-to-face and phone services accredited by MoneyHelper
- from Citizen’s Advice - you can read guidance about bankruptcy or contact them
If you do not want to be made bankrupt
You may be able to oppose your bankruptcy petition.
Scotland and Northern Ireland
The bankruptcy process is different in Scotland and Northern Ireland.
2. Oppose a bankruptcy petition
You can oppose a bankruptcy petition if you do not agree with it. You must do this at least 5 days before your bankruptcy hearing.
It does not cost anything to apply.
You can hire a solicitor to help. Check whether you’re eligible for legal aid.
Download and fill in form Bank 6.
Send the form to the court that sent you the bankruptcy petition. You can submit it online but only if it was one of these courts:
- Admiralty and Commercial Court
- Chancery Division
- Companies Court
- High Court (including Bankruptcy Court)
- London Mercantile Court
- Rolls Building
If it was another court you’ll need to submit the form by post.
If you’ve been made bankrupt
You may be able to cancel your bankruptcy and stop it being advertised.