Bankruptcy Budget Planner
Plan your income and living costs for bankruptcy and see how much spare income might go towards income payments. An illustration only, not advice on whether bankruptcy is right for you.
Income and debts
Include benefits and any partner’s contribution you rely on.
If you have spare income, you may be asked to pay some of it for up to three years. The Official Receiver decides.
Your monthly living costs
Your bankruptcy budget (illustration)
Living costs
£1,510.00
Per month
Possible monthly income payment
£290.00
Income left after costs
Total over 36 months
£10,440
Share of debt covered by those payments
42%
£14,560 left over
The Official Receiver decides what counts as reasonable living costs and whether you must make income payments. This tool does not decide that, and it does not show whether bankruptcy is right or available for you. Speak to a free debt adviser first.
Budgeting during bankruptcy
Bankruptcy is a formal legal process for people who cannot pay their debts. In England and Wales it usually lasts 12 months, although some things can continue afterwards. If you have spare income, you may be asked to pay some of it towards your debts through an income payments agreement or order, which can last up to three years.
This planner shows the basic sum for your own understanding. The amount you would actually pay is set by the Official Receiver.
Speak to an adviser before deciding
Bankruptcy affects your credit file, your assets and in some cases your job. There are other options, such as a Debt Relief Order for people on low incomes with few assets. Free, impartial advice is available from MoneyHelper, StepChange, Citizens Advice and National Debtline.
How to use this calculator
- Enter your monthly income and your total debts.
- List your monthly living costs.
- Read how much would be left over and what an income payments agreement could look like over the months you choose.
How it is calculated
Money left each month = income − living costs (never below zero).
Total over the period = money left × number of months, compared with your total debts.
Worked example
With £1,800 a month of income, £1,510 of living costs and £25,000 of debts, £290 a month would be left. Over 36 months that is £10,440, which covers about 42% of the debt and leaves £14,560.
Assumptions and limits
- This is an illustration only. The Official Receiver decides what counts as reasonable living costs and whether you must make income payments.
- It does not show whether bankruptcy is right or available for you, and it does not include fees, assets, your home or secured debts.
- The rules here are for bankruptcy in England and Wales. Scotland (sequestration) and Northern Ireland have their own rules.
- Check GOV.UK for the current application fee and rules.
Common questions
Does this tell me whether I should declare bankruptcy?
No. It is only a budgeting illustration. Please get free debt advice before making this decision.
What are income payments?
If you have money left over after reasonable living costs, you may be asked to pay some towards your debts for up to three years. The Official Receiver decides.
Is the process the same in Scotland and Northern Ireland?
No. Scotland uses sequestration and Northern Ireland has its own rules. The illustration here is for England and Wales.
What else could I consider?
Depending on your situation: a debt management plan, an IVA, a Debt Relief Order or other help. A free debt adviser can explain which apply.
Related guides
Related calculators
- IVA Budget CalculatorSee what income could be left after living costs, and what an IVA term might cover.
- IVA vs DMP Comparison CalculatorAn illustrative side-by-side of IVA and DMP payments. Not an eligibility check or a recommendation.
- Cost of Living CalculatorAdd up your monthly costs and see what is left from your income.
- Debt-to-Income Ratio CalculatorYour monthly debt payments as a percentage of your gross income.
These calculators give estimates based on the figures you enter and the assumptions listed above. They are not financial advice. Your numbers are worked out in your browser and are not sent to us.
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised debt adviser before making important decisions about your money.