This bankruptcy timeline shows WHAT is likely to happen and WHEN if you go bankrupt in England, Wales or Northern Ireland.
Some of the times are fixed – the bankruptcy marker is definitely going to drop off your credit file after six years.
Others are less definite, but the indications in the timeline here should be right for a large majority of the people who go bankrupt.
Take the decision to go bankrupt
Bankruptcy may seem obviously right for you, but it’s always worthwhile talking to a good free debt advice agency – this is a very bad decision to get wrong!
So if you haven’t taken debt advice so far, I suggest you phone National Debtline on 0808 808 4000. They also have a very good webchat facility, staffed by proper debt advisers.
Your debt adviser will be able to answer many of the questions you have about the process of bankruptcy – for example, should you open a new bank account before or after you go bankrupt?
Get the bankruptcy fees
They can be paid in stages but they have to be paid in full before your bankruptcy application is submitted. See Paying your bankruptcy fees for details.
If you don’t think you can afford the fees, read Help With the high Bankruptcy Fees which looks at possible ways to raise the money.
Complete the online bankruptcy application
It’s not complicated but it is very long!
If you are very well organised or your affairs are very simple, you may be able to complete this in an evening. But most people will need several sessions – you can save what you have done so far and then come back and add details such as an address for a creditor or a pension manager, or review your Income & Expense amounts.
All your debts will be included in your bankruptcy even if you miss one off your application – except for a few like student loans and Social Fund loans. A debt adviser can tell you if any of your debts can’t be included.
Adjudicator approves application
Your bankruptcy application will have to be approved by the Insolvency Service’s Adjudicator. If you have taken debt advice and been told that bankruptcy is a good option for you, you can have confidence that it will be approved – it is VERY rare for an application to be rejected.
When you have submitted your online bankruptcy application, it goes to the Adjudicator’s office to be checked. The Adjudicator’s target is to approve 95% of applications within two working days.
When your application is approved your Bankruptcy Order is made – this is the start date for you bankruptcy, not the date you submitted your application.
Immediately you are bankrupt, some restrictions apply which are explained here. If you are unsure about these, ask the Official Receiver’s office. In fact if you are unsure about anything at all, ask the OR’s office!
Interview with Official Receiver’s office
This will normally be in the first week or two after bankruptcy. It usually happens by phone, unless your affairs are complicated.
After Covid-19 some people have reported waiting longer for this first interview – this isn’t something to worry about, it doesn’t mean your case looks “difficult”.
If you are nervous about the interview, read “Why I went bankrupt and how it went” which has some details about a reader’s OR interview.
The best advice is to be completely truthful and say if you don’t remember something. The OR is not looking to catch people out, but to find out what happened.
Make NT tax payments (if any)
If you pay income tax through PAYE, your tax code will be changed to NT and you will have to make the tax payments to the OR instead until the end of the tax year in April. You will not be worse off because of this, you will be paying the same amount of tax to someone different.
If you go bankrupt towards the end of the tax year, this arrangement may never be set up. If you are unsure what you need to do, ask the OR’s office.
Start IPA monthly payments (if any)
If you have sufficient surplus income, you will be asked to agree to an Income Payments Agreement (IPA). An IPA cannot be set up after you are discharged.
Most people don’t – only about 1 in 6 people who went bankrupt in 2017 had to pay an IPA.
If an IPA is agreed, it lasts for three years from the date it starts, usually a few months after your bankruptcy date.
You should report significant changes in your income or expenses to the OR. During the three years, the monthly amounts can go up or down or be paused so you pay nothing.
Read Should I get a new job? Work overtime? which looks at the problem of working more if much of the money will be taken by your IPA.
Discharge from bankruptcy
Almost everyone is automatically discharged after one year. The very rare exception is if the Official Receiver goes to court to suspend the automatic discharge because a bankrupt is not co-operating.
See What happens when you are discharged? for more details about how you know if you have been discharged, and what changes.
Discharge also ends the bankruptcy restrictions except for the few people who have a Bankruptcy Restriction Undertaking (BRO/BRU), in which case the restriction on getting credit, becoming a director etc will continue to apply until the end of the BRO/BRU.
Start credit file clean-up
Many people swear they will never again borrow any money after going bankrupt! But if you want a good credit rating in future, going through the Repair Your Credit After Bankruptcy process will speed things up.
It may take your creditors a while to update your records, so wait two or three months after your discharge before starting this clean-up process. Your credit rating is never going be good though until bankruptcy disappears six years after the date your application was approved.
Trustee decision about your house
If you have a house with any equity a trustee is likely to be appointed to manage this asset. The trustee has up to three years from bankruptcy date to deal with this property, see this summary of the trustee’s options.
Monthly IPA payments end
This will be three years after your IPA started. If your IPA payments were reduced or halted for a while, this does not extend the three-year IP for longer.
From this point on your bankruptcy is effectively finished. It will be another couple of years before the bankruptcy timeline ends when the bankruptcy marker on your credit record is deleted.
Bankruptcy removed from credit records
This will happen automatically six years after your bankruptcy date. Check your credit records a month or so later to make sure everything looks correct!
This is the end of the bankruptcy timeline, you have your clean start and now have a clean credit file.
A Guide to Bankruptcy – what really happens
Timing, fees, applying to go bankrupt
How does discharge from bankruptcy work?
Ilya says
Hello Sara,
I’ve been paying my IPA (£220p/m) promptly for 2 and half years. Since April 2020 I’ve been furloughed up until September this year. In the beginning of furlough I’ve contacted my IPA receiver via Email stating that my income had dropped to such extend that it was impossible for me to maintain existing payment. I had no reply from the Receiver. I phoned to them and automatic message said that due to COVID the office was closed. I’ve skipped my payment and did so through the furlough period . In September 2020 I wrote an email again saying that I was back to work but my hours of work were reduced together with 5% salary reduction and reduction in my hourly pay. Still I haven’t heard anything from them.
Today I received a letter from IPA receiver stating that my debt has been passed to Debt Recovery Agency (?!) (This was the only reply I received from them despite my previous emails)
Dear Sara , please advice what are my options.
Thank you in advance
Sara (Debt Camel) says
The IPA receivers will have been dealing with hundreds of requests to suspend or reduce the monthly payments. You have been doing the right thing so far. You just need to persevere – I wouldn’t worry too much about this, it should all get sorted in the end.
The Insolvency Service has published new contact details here https://www.gov.uk/government/publications/contacting-an-official-receiver/contact-information.
Most payment agreements with Clarke Willmott are being changed to Advantis Credit Ltd in September or October 2020. To ask to vary these arrangements you can contact Advantis or complete the insolvency enquiry online form here https://www.insolvencydirect.bis.gov.uk/externalonlineforms/GeneralEnquiry.aspx. Or do both!
Dean powell says
Hi
I have been discharged from bankruptcy since 2007 and I am just about to move house. On the mortgage application it asked if I had been backrupt in the last 6 years. Which I haven’t so answered no. My question is, is there any record of my bankruptcy anywhere now ie. Credit report or the hunter database.
Sara (Debt Camel) says
You should always answer questions on a mortgage application honestly.
No there shouldn’t be any record on your credit file. It never would have shown on National Hunter. The Insolvency Service register would have been cleared years ago. The Gazette retains records but google or other search engine will not find these. Your creditors can retain records for as long as they want, so avoid applying to them for a mortgage!
Mk says
I think that is incorrect Sara, the Gazette lists all bankruptcies, even though I was discharged 15 years ago a simple search still comes up with my bankruptcy details. My credit file is clear and I have a good credit score now, sadly anyone can find it if they search hard enough.
Sara (Debt Camel) says
The search has to be on the Gazette site. Old records re no longer indexed by Google and other search engines.
Aleksandra says
HEY
ANy idea how can i provide how many days i was in uk for the last 12 months? I Mean i was abroad only once during this time for about 10 days. So i am planning to scan my tickets but not sure if they will accept this or I need something else saying this is true.
Sara (Debt Camel) says
a copy of the tickets sounds useful. Bank statements showing you shopped locally? I wouldn’t expect this will be difficult for you.
Dandj61 says
I went bankrupt in May 2019 and never missed a payment until July and August 2020 which at the time was wilmot & Clarke who said that it will not affect my future payments and my Bankruptcy will still finish in April 2021.
I received a phone call from Advantis in October that they will be taking over my account and to wait for further correspondence and to keep paying monthly, in November they phoned to say to cancel my monthly DD and they will set up payment with me, they also said that I still owe £3,600 as I had a 2 month holiday, I have since heard nothing from them and I have tried to get in touch only to be told due to corona virus noone is answering calls, I myself is on furlough and I has been since October 2020 I can not afford to pay £283 a month until I’m back full-time.
Plus what happens to my Bankruptcy 3 years.
Weatherman says
Hi,
Did you get an Income Payment Agreement or Order when you went bankrupt? If you did and your circumstances have changed, you should always let your Official Receiver know as soon as you can: https://www.gov.uk/government/publications/contacting-an-official-receiver/contact-information
If you have written confirmation from Willmott & Clarke that your missed payments won’t affect your future payments, you should email or post a copy of this to Advantis. You should also tell them that you no longer afford the repayments, and that you have contacted the Official Receiver. The Official Receiver should then look again at your income and expenditure, and work out what you should now be paying.
After 3 years, if your Income Payment Agreement or Order is completed, you won’t need to make any more payments, or report any changes in your circumstances.
Sara (Debt Camel) says
I agree with what Weatherman has said.
An IPA cannot be longer than 3 years.
Missed payments would only still be owed if you didnt pay them and should have. Eg the bank payment was cancelled say. They you would still have to pay. But if you missed these payments because you couldn’t afford them and told the Trustee, then the new Trustee should not be saying you have to make them up. And your current payments should now be reduced, possibly to zero if you are on furlough
Kevin says
Hi, I have just applied for bankruptcy and it’s been accepted. In two weeks the finance company are taking my car back. Irrespective of wether I will be allowed to buy another car, my dad has offered to buy a car for me to use ( with his own money ) in his name, his asset. Is this ok?
Sara (Debt Camel) says
yes that is fine. You can be the registered keeper and insure it, but it remains the property of your dad so the OR will have no interest in it.
You will only be allowed the car running costs (petrol, insurance etc) as allowable expenses if the OR considers that you need a car.
Kevin Martin says
Thankyou for your swift reply. But I was sure I couldn’t be the registered keeper. So is this basically allowed as a gift?
Sara (Debt Camel) says
no it’s not allowed as gift to you – but it is allowed for you to drive a car that is owned by someone else…
They could then give you the car as a gift in a few years if they want to, but not while you are bankrupt.
Kevin Martin says
Ok Thankyou. On the subject of my car being repossessed. Even if the finance company sell it at dirt price there will be a substantial amount left once they take their costs etc. Will I be entitled to this money?
Sara (Debt Camel) says
It will probably be paid to your Official Receiver.
Kevin Martin says
Yes that’s fine, that’s what I meant as obviously this will go towards the creditors and may hopefully reduce any IPA I have to make? My main concern is that the profit isn’t kept by the car financers
Sara (Debt Camel) says
It is VERY unlikely to reduce your IPA. Your IPA has to repay the OR fees, and your debts in full. This hardly ever happens.
steve says
been bankrupt for 10 weeks still not had interview with os office do you always have a interview or sometimes you dont have one
Sara (Debt Camel) says
it would be unusual to not have an interview… some things have taken longer after the pandemic but I am suprised you haven’t been contacted yet. Do you think you may have to pay an IPA?
Kevin says
Hi, on this same subject, my bankruptcy was accepted on February 12th. Apart from a few recent emails regarding my car finance I’ve heard nothing. No questionnaire or interview
Sara B says
Hi sara, I am thinking of going bankrupt as I have approx £25,000 debt that I was left with after separating from my husband. I have looked into the procedure and I am concerned about expendable money at the end of the month. I have less than £100 left usually after all out goings if that. I haven’t paid any of my debt for 3 years as I had to put that money into renting to enable me to leave my marriage. I am scared I will be left with nothing at all and my mental health is suffering due to this.
Are the courts able to take everything that is remaining? Also I’m concerned about them freezing my bank accounts. I have also just had an accident and do not get sick pay from my current job as I have not been with them long enough so I am probably have to go into UC for a couple of months TIA sara
Sara (Debt Camel) says
Bankruptcy may be a good option for you – or it is possible that a Debt Relief order might… At the moment DROs only apply if you have less than £20,000 in debts and less than £50 a month “spare income” but the Insolvency Service started a consultation in January about increasing these limits to £30,000 and £100 a month.
I think you should talk to a good debt adviser who can look at your situation and your options. They can look at bankruptcy, a possible DRO and answer your questions. I suggest you phone National Debtline on 0808 808 4000.
In my experience it is easy for people to overestimate how much spare income they have left after paying their bills and normal living expenses. In bankruptcy you are allowed an amount each month not just for rent, utilities and food but also clothes, prescriptions, holidays (small), dry cleaning, haircuts and even a small amount (£20) for saving. The large majority of people who go bankrupt don’t have to make ANY monthly payments to their bankruptcy.
It is now easy to open a new basic bank account the day after you go bankrupt and get all your income and debits switched over to there: see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
Sara B says
Thank you Sara for this advice
Joel says
Hi Sara, firstly many thanks website, you’ve provided me with invaluable information to aid with my bankruptcy, its very much appreciated.
I was made bankrupt in Feb, I had a chat with a B1 Inspector from the ORs office – no meeting with an OR required (as everything was very clear cut). I’m now in a state of limbo and not sure if an IPA will be set up for me as its been 3 months. I am working and I do have a little surplus money left over after my outgoings but the OR’s office have not yet contacted me to set to agree/setup an IPA. Also, the letter from the OR sent to my creditors states there is unlikely to be a payment to creditors in this case and they (OR) do not anticipate to make further contact (with the creditors). Three questions if I may:
– Is there a time frame they normally work to in setting up an IPA?
– With the statement to creditors stating a payment is not likely, is this a good indicator that an IPA will not be set up all?
– Whilst waiting for an IPA setup, am I free to spend my surplus money on what I want? (which is not very much but I may want to have the occasional take-away and I’m a little paranoid as it will be shown on my bank statement).
Many thanks..
Sara (Debt Camel) says
– Is there a time frame they normally work to in setting up an IPA?
No, but the longer it goes on the less likely it is.
– With the statement to creditors stating a payment is not likely, is this a good indicator that an IPA will not be set up all?
No. the OR’s fees have to be paid first, so unless the IPA would be for a very large amount the creditors will get nothing.
– Whilst waiting for an IPA setup, am I free to spend my surplus money on what I want? (which is not very much but I may want to have the occasional take-away and I’m a little paranoid as it will be shown on my bank statement).
yes.
Sara (Debt Camel) says
Also have any of your expenses gone up? eg council tax, water rates or utilities? Many go up in April – if yours have, make sure you tell the OR’s office.
Hayley says
Hi,
I was discharged from bankruptcy in February (2021) and yet my actual bankruptcy and the discharge still hasn’t appeared on any credit report. I have checked noddle, equifax and experian. All my debts are still showing as open. When should I expect this to change?
Sara (Debt Camel) says
So the bankruptcy isn’t showing? That is odd – have you moved or changed your name?
If your bankruptcy is still showing on the Insolvency register I suggest you take a screenshot of that now. But it is only there for 3 months after discharge so it may already have dropped off.
You can get a Certificate of Discharge from the insolvency Service, see https://debtcamel.co.uk/discharged-from-bankruptcy/. When you have that, I suggest you contact all your debts in your bankruptcy, send them the Certificate and ask them to add a default date on or before the start of your bankruptcy (unless there is already an earlier one on your credit records) and ask them to mark the debt as satisfied or partially satisfied. See https://debtcamel.co.uk/credit-file-after-bankruptcy/
jimbob says
A final oversight and wonder if you can put my mind at ease. Through my debt charity adviser i was able to have my dro dealt with through them and my dad. The dro team have said as soon as i have official confirmation of my inheritance amount let them know.. They will then advise next steps. With mental health issues playing on my mind and reading for example about bankruptcy. Talk of court appearance. Long interviews with OR. Getting me scared. I am and will be on benefits long term. So i am worried i may major problems with other solutions
Sara (Debt Camel) says
The OR in bankruptcy is usually a lot less scary than people fear.
And as you are on benefits long term the OR will probably not be very interested in you at all and there is no chance you will be asked to make monthly payments.
No one has to go to court any more – bankruptcy is a simple online application.
jimbob says
Thanks for reassurance. Feeling a lot less anxious now
Jay says
Hi Sara,
Great website, I’ve been reading it this morning as I’m considering bankruptcy. I’ve done an online budget tool and found that I have at least £38k of debt now, and that will go up if I can ever figure out how to give HMRC the info they need to work out 2 or 3 years of missing self assessment returns. I can’t see any other way out. The budget tool also showed that I’d need to pay out £100 a month more than I have coming in if I were to attempt to repay the debts. I have a few concerns and some questions:
1. This IPA business, I though this only lasted for the period before discharge? I’m worried about surviving 3 years with no money whatsoever for hobbies etc. I can’t imagine that would be a great existence…
2. Should I mention that I believe I have ADHD to the OR if interviewed? I’m in the process of getting a diagnosis for this but have done a lot of conclusive research over the past year.
3. I have to do a lengthy commute each day. If I am restricted to a £1000 – £1500 car, I am concerned about reliability etc. for this. Can this be offered in mitigation to keep a more expensive car?
Many thanks!
Sara (Debt Camel) says
The budget tool also showed that I’d need to pay out £100 a month more than I have coming in
do you mean the payments would be more than your total income? or the payments would be more than the amount you have left after paying living costs?
Are/were you self employed?
how much is your car worth? Are you single? can you get to work by public transport? could you live closer to work?
Jay says
Payments would be more than I have left after rent, council tax, fuel, food etc.
I was previously working as a contractor via my own limited company. Bit of a grey area regarding whether it’s self employed or not, but HMRC consider you an employee of the company for tax purposes.
Car is worth around £6000. I am single, I couldn’t reasonably get to work via public transport. It’s around 40 miles each way. I’m still contracting, albeit working via an Umbrella Company, so my employment could end anytime, meaning it wouldn’t be reasonable to be expected to live closer, in my view. I’m currently on a 3 month rolling contract so if it ended I’d then potentially have to move again, with no way of raising a deposit for the next house.
Sara (Debt Camel) says
I think it is unlikely you would be allowed to keep a 6k car.
An IPA would be for 3 years – not much fun, but do you have any better alternative?
It isn’t clear to me if a debt management plan would be a better option for you. That may depend on what your tax debts are.
I think you need to talk your full situatrion, your options and the pros and cons of each through with a debt adviser. I suggest you call National Debtline on 0808 808 4000.
EDIT in October 2021 the limit for a car was increased to £2,000.
Jay says
Yeah I suspected as much re: the car.
The budget tool I used was the StepChange one, which told me I needed to pay out more than I had coming in. I have to speak to an adviser before I go any further, but when it’s saying that without me adding at least £6k more of HMRC debt…. I don’t hold out much hope. And I don’t fancy ten years of that in all honesty.
Sara (Debt Camel) says
OK, so talk to the adviser, explain about the unknown size of your HMRC debt and see what your options are.
Jay says
Hi Sara,
Just to update; the adviser recommended bankruptcy, so it looks like that’s that. I feel both relived and nervous at the same time, weirdly. Thanks for your help.
Claire says
Hello I wonder if anyone can advise me.
I was declared bankrupt in 2010, discharge in 2016, I’m applying for my first mortgage with my partner who has a squeaky clean credit history.
We have savings and equity in the house we are selling.
I just wondered will anyone be able to see my old bankruptcy? I’ve checked all my credit files and it’s definitely not there. I’ve done my best to keep all my bills up to date too since then.
Have been accepted for AIP but really worried it will be picked up! Nobody has asked if I’ve ever been bankrupt and I know I have to disclose if asked. Praying they don’t!!
Feel I’m reliving the nightmare of all those years ago.
Any advice would be gratefully received.
Thank you 🙏
Sara (Debt Camel) says
I hope your mortgage application wasn’t to any lender that you owed money to in your bankruptcy?
It is pretty normal to be asked if you have even been bankruptcy or in an IVA or have ever been insolvent. Yours was a very long time ago – most lenders won’t care.
BTW did you mean discharged in 2016? Or just that it dropped off your credit record in 2016?
Jack says
Hi Sara
I went bankrupt six months ago , due to gambling debts. I have bro attached for five years . I’ve been back living at home and my parents are trying to help me and want to put £5000 in my new basic account for six months rent as every estate agent has told me that I would need to provide six months or a year . Would I have to inform the insolvency agency or should I just ask my parents to pay the six month or year rent from there bank account once I find a property to rent .
Thanks
Sara (Debt Camel) says
You would have to tell OR and explain if it goes through your bank account. May be best to avoid.
But you will have to talk to OR anyway about the arrangements as your expenses will be changing a lot. Are you currently paying an IPA?
Jack says
Hi Sara,
During an undischarged Bankrupcy do you have to declare any cash gifts given as birthday presents etc ie amounts under £100.00
The reason I’m asking is I have been given £25.00 which was paid into my bank, but not sure if this is something I need to declare.
Regards
Jack
Sara (Debt Camel) says
£25, no. How much you do have to tell the OR about is a grey area, but under a hundred and I think it’s safe to say the OR will not be interested.
Jack says
Thank you Sara
Lisa says
Hi I had my telephone interview with the OR 3 months ago
I’ve just had a call from another person saying they will be calling me Monday to discuss my expenditure is this normal after 3 months does it mean they don’t believe my expenditure? I was negative balance of about £21 when I filled it in.
What can I expect when they call what will they want from me etc thanks
Sara (Debt Camel) says
It could be almost anything. They may want to ask how you are managing on a negative budget. Or to query something
I suggest you think about whether anything has changed since the last call – has your income gone up or fallen? Have your expenses gone up eg petrol, energy bills?
David says
I have just heard from the official receiver to say they have finished adminstration of my bankruptcy. This has taken just short of 30 years. Is this normal?
Sara (Debt Camel) says
I doubt it. Were there pensions to be claimed?
Ste G says
We went down the Bankruptcy road sent the forms and paid yesterday 4pm , then had this today in email , does this mean i am now bankrupt I have reviewed the bankruptcy application you submitted on 05/10/2022.
As a result, I have approved your application and made a bankruptcy order in your name.
Sara (Debt Camel) says
yes it does
Deppi says
They still need to have the interview with the official receiver, dont they? I recall a similar email when I applied for my bankruptcy, after i paid, but then i had to have the interview. Has this changed?
Sara (Debt Camel) says
They are already bankrupt, which is what they asked about. There is usually an interview with someone from the OR’s office afterwards.
Lee K says
Hi there, I’m currently in a DMP and have been for several months, but my bank and credit cards are now looking to unfreeze the interest which would be devastating for the plan and so bankruptcy is back on the table as an option.
My question is about the IPA payment, typically are these about the same as a DMP payment or is the official receiver harsher on what counts as reasonable living costs? Thank you very much
Lee
Sara (Debt Camel) says
This sounds unusual.
Have you set up the payments yourself or are you using a DMP firm?
Do have a house with equity or any assets to protect? How much do your debts in the DMP add up to?
Are there any debts outside the DMP that you are paying in full?