Bankruptcy

In England and Wales you apply online and pay a fee, and an adjudicator decides whether to make the order. Your assets, including any equity in your home, may be sold to pay creditorsHow to Deal with Creditors: Communication and NegotiationPractical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.Read more →, and you may have to make payments from your income for up to three years. BankruptcyBankruptcyBankruptcy is a legal process that writes off most debts when you cannot repay them. Understand how bankruptcy works in the UK, the consequences and alternatives.Read more → is recorded on the Individual Insolvency Register and your credit fileHow Credit Scores Work in the UKHow UK credit scores work: what the credit reference agencies record, what affects your score, why scores differ between agencies and what lenders actually see.Read more → for six years.

It carries restrictions, such as limits on obtaining credit and acting as a company director. Because it is a major step, get free advice from a debt charity before applying.