Bankruptcy has many disadvantages but it is over quickly – only a year. If you go bankrupt, your debts will be wiped out with only a few exceptions, the most common being student loans. It gives you a new start to rebuild your finances, an escape from an unmanageable debt situation.
This Guide to Bankruptcy provides information so you can:
- make the right decision about whether bankruptcy is your best option; and
- find out the real facts about what happens after you go bankrupt.
There is a lot of detail here – start by looking at the links in orange if you want an overview.
Contents
Concerns about going bankrupt
Bankruptcy – the Big Questions covers the most common worries that people have, such as will you lose your home? your car? your job? can you ever get a mortgage afterwards? who will be told that you have gone bankrupt?
Other worries you may have include:
- what types of debts are included?
- can you continue in business after bankruptcy if you are self-employed? Most people can, but contact Business Debtline for specialist advice about this.
- will my bankruptcy be approved?
- living abroad and want to go bankrupt?
- is it OK to spend backdated benefits before going bankrupt
- might you get a Bankruptcy Restriction Order (BRO)? Find out why a few people get a BRO and whether one would make much difference to you.
- do you have to tell the OR about all your expenditure? You may be asked questions about expenditure before you went bankrupt but don’t normally have to report on what you spend your money on after you go bankrupt.
- what might the Official Receiver take? looks at concerns about your possessions – most people don’t lose anything!
- what can the Official Receiver make you do? looks at concerns about being told how to live your life – might you be made to move, stopped from changing jobs? etc The answers are almost all “no”.
- is your pension safe in bankruptcy? for most people the answer is Yes your pension is safe.
- is a new partner’s house safe if you go bankrupt? yes – find out the facts.
Myths about bankruptcy
There is a lot of poor, incomplete or just plain wrong information around about bankruptcy on the internet and social media.
Much of this comes from people who will make money if you decide to choose an IVA instead of bankruptcy. Here are some examples of misleading or incomplete information.
Preparing for bankruptcy
The process of going bankrupt gives an overview, including what you will need to put on your bankruptcy application. For more details see:
- help with the high bankruptcy fees – this covers your options for getting the money together.
- how to pay the fees – this looks at the mechanics of how to pay them when you have the money. This can be done by instalments.
- how to fill in the online bankruptcy application – it’s long but it’s not difficult, so find out what information you will need.
- your bank account options – you may need to change bank accounts. This link is kept updated with a list of accounts that you are allowed to have when you are bankrupt.
- a checklist for the application process – knowing what you will need may make it all a bit easier.
After you go bankrupt
A Timeline for Bankruptcy shows what happens when.
What happens after you have gone bankrupt summarises when you will be discharged, what restrictions will apply before your discharge etc.
You will have an interview with the OR. This is usually over the phone but you can ask for a face-0to-face interview if you find the phone difficult.
The Official Receiver will decide if you have enough surplus income to make monthly payments, this is called an Income Payments Agreement (IPA). Most people who go bankrupt do not have to make any payments. If you do, the payments will last for three years, but they are flexible so if your situation changes they can be reduced or increased.
Some more detailed articles:
- who should you tell after going bankrupt? – you don’t have to tell anyone, but sometimes it can be helpful if you do;
- what happens if you forgot to list a debt on your application? – it’s usually OK, the debt will be included in your bankruptcy anyway, but check the details;
- should you get a new job? Or work overtime? – possibly not if you have an IPA or you are undischarged.
- repossession after bankruptcy – what you should, and should not, do if you want to hand back the keys;
- inheriting money when you are bankrupt;
- will the Official Receiver take your redundancy money?
When does your bankruptcy end?
Almost everyone is discharged from bankruptcy after a year:
What happens when you are discharged? This is the end of your bankruptcy and your debts in your bankruptcy are wiped out. the small number of people who have to make monthly payments will have to carry on making any IPA payments for the rest of the three year IPA period.
How to repair your credit record after bankruptcy The credit repair process can start a few months after you are discharged, but the bankruptcy marker will remain on your credit record until six years after you went bankrupt.
The alternatives to bankruptcy
Even if your debts are clearly impossible, you may still have other debt options::
- IVA or bankruptcy – IVAs were designed for people who can’t go bankrupt because of their jobs or who have assets to protect. They take longer than bankruptcy and will cost you more in monthly payments, but if there are reasons why bankruptcy won’t work for you, an IVA could be a good alternative;
- a long DMP or bankruptcy – bankruptcy lets you put your debt problems behind you, and it is often better than being stuck in debt management for a long while;
- a Debt Relief Order is better if you qualify – a DRO is cheaper, easier, and quicker than bankruptcy, so if you are renting see if you meet the other DRO criteria;
- selling the house: it may be possible to keep your house after you go bankrupt if there is no equity or someone else can “buy” your share of the equity from the Official Receiver. But also think if it would be better to sell the house, especially if it is the wrong size, in the wrong place, your mortgage is interest-only or it is too expensive for you.
Even if you are sure bankruptcy is your best (or only) option, it is still good to take some advice about this, see Where to get help and advice for suggestions.
Is a creditor threatening bankruptcy?
This guide has assumed that you are deciding to go bankrupt. It is also possible for a creditor to make you bankrupt – this is rare but if you receive a Statutory Demand you cannot safely assume that your creditor is bluffing and ignore it. In particular, HMRC and local councils can and do make people bankrupt because of tax debts. If you have assets such as a house, if a creditor makes you bankrupt you may end up incurring tens of thousands of pounds of costs to get the bankruptcy annulled.
If you think a creditor is seriously threatening bankruptcy, or if you receive a Statutory Demand, you need legal advice fast – go to your local Citizens Advice, a local Law Centre or a solicitor who has experience of personal insolvency.
Andrew says
Hi
I have car finance with Moto Novo and have been recently declared Bankrupt I rang Moto Novo up and told them and they said I have to send the car back as its company policy when insolvent to have car returned.
I have only had the car a year so not paid 50% off and can not find funds to do so. I asked if I could continue payments and keep the car but answer was no even though payments are up to date and never late. They said I could volunteer to send the car back myself and they would sell car and deficit would be written off by the Bankruptcy.
What would be best me return the car myself voluntarily or wait till they could themselves repossess it I suppose when I miss 2 payments they even cancelled the Direct Debit as soon as I rang them.
Sara (Debt Camel) says
Did you take advice on going bankrupt? Because you should have been warned that this is was a possibility with any of the forms of insolvency – bankruptcy, IVA or DRO.
Can you manage without a car?
Andrew says
Hi
No unfortunately I didn’t take advise regarding the car but I have use of another car that my wife has bought after we where told that the Finance company wanted it back.
Would it be best to just return the car ASAP as requested by them via a voluntary return request ? they have sent me a form to sign but would that be a new agreement or a deed of acknowledgment admitting acceptance of liability for the debt. Then it would not be written off with current my Bankruptcy
Sara (Debt Camel) says
If a car is essential for you, you should still be able to include the insurance, petrol, servicing costs etc as expenses even though it is owned by your wife.
The Motonovo form isn’t a new agreement, it is a termination of the old one (I assume… read it carefully… that’s what it should say).
On one level it’s doesn’t matter what you do, the resulting debt will go into your bankruptcy. I would suggest it’s best to sort this out asap so you can cancel the insurance and not have two sets of car costs.
If you are still unsure, talk to your OR’s office.
Andrew says
Hi Sara
Thank you so much for your help
The Moto Novo form reads as follows
RE: AGREEMENT NO:
GOODS MAKE AND MODEL: SUZUKI, SWIFT HATCHBACK
REGISTRATION NO:
I request to surrender the above vehicle to yourselves so that it can be sold at auction and the sale proceeds credited to the agreement to reduce my liability to you.
I understand that any shortfall liability may be included in my bankruptcy after the vehicle has been sold.
Sara (Debt Camel) says
that looks fine
Andrew says
Thank you so much for your help site and yourself have been an enormous help.
P says
Hi,
I made my self bankrupt in 2004. I’m currently struggling with credit card debt.
How would I be treated the second time?
Thanks.
P.
Sara (Debt Camel) says
I think that sounds like very old history. Not sure the Official Receiver will be at all interested in it.
But since then there is a new insolvency option – a DRO. See https://debtcamel.co.uk/debt-options/dro/
I suggest you talk to National Debtline on 0808 808 4000 about your options and the pros and cons. Don’t assume they are the same as 20 years ago.
Simon says
I live with my partner. Up until a year ago, the house was in joint names with her ex-partner. We’ve been together for about 9 years, I’ve lived in the house for about 8 years. I pay my partner money towards board and bills. I’ve never made any direct payments towards the property or paid for any home improvements. Our intention is for the property to be left to my partner’s three children (one is mine). A condition of the re-mortgage was that I had to sign a waiver clarifying that I had no interest in the property.
If I were to go bankrupt, do you think there would be an issue with the house?
Sara (Debt Camel) says
The remortgage was into her name alone?
Simon says
Yes, absolutely.
Simon says
I think it’s only just updated at the land registry. Definitely her sole name. I have no interest in it – legally, equitably or figuratively. Quite the opposite, in fact.
Lisa says
Hello, I wander if you can help with my query, I was declared bankrupt 19/11/2019 and one of the debts i had included was an Amigo loan, i havent heard anything from them since 2019, However my guarantor has (my mum) who has made a claim against them regarding affordability checks but still not heard anything. Yesterday 7.9.23 i received a letter from Lantern debt recovery who has bought the debt from Amigo’s insisting i owe the full amount and need to put a payment plan in place. Can they do that? or do i just supply them with the bankruptcy details? i paid the bankruptcy for 3yrs which final payment was 23.12.2022. this has absolutely devastated me as my credit score is starting to increase and i am worried all my hard work to improve is going to affect this. the loan is showing as satisfied on my credit file also?
Sara (Debt Camel) says
No they can’t. Just sent Lantern your bankruptcy details.
The loans should show as satisfied or partially satisfied.
Was your mothers claim based on her not being able to afford the loan or you not being able to afford it or both?
Alice says
Has anyone here or know of anyone that has been accepted for a mortgage 3 years after discharge? I will be 3 years discharged on the 28th of November 23. I have 13 defaults with zero and settled dated 28th November 2020 (date of discharge)
I plan to apply for a mortgage around the 4th of December with Nationwide as apparently they accept mortgage applications 3 years after discharge. I am really worried it will be declined. Can anyone reassure me on this at all?
Much appreciated
Sara (Debt Camel) says
I haven’t heard that Nationwide is doing this.
How large is the deposit – what percentage?
I hope they accept your application – let us know!
Josh says
Hi.. thanks for this platform. I had ccj filed against me for unpaid debt. I decided to apply for bankruptcy few days after in 2021 because of that. I added the ccj, overdrafts from Santander and Barclays to the bankruptcy. I got discharged a year after with my credit file showing satisfied d bankruptcy and Santander but not Barclays, ccj and the company which I owed.
I requested for my statutory credit report from all experian, trans union and equifax. Surprisingly, the bankruptcy and the ccj are not showing on my credit report that I was sent by Experian but it appears to show 2 negatives on the website. Both statutory credit reports from equifax and transunion are showing Barclays overdraft and my creditors (ccj) s as defaults.
Another issue is, I also have a current account with TSB with no debt but was added to the bankruptcy . This was actually opened few months before the bankruptcy and I was hoping to use it for receiving my wages. I couldn’t access my wages in the first month as it had restrictions. I had to take a letter to the back to have access of my money. Since being discharged in 2021, I’ve given TSB a copy of the bankruptcy discharge form in order to remove the restriction. However, this has not been possible as the restriction only comes off for few seconds then it goes back on my account. I’ve been to the bank several times with same outcome. Is there a way I can rectify these issues please.
Thanks
Josh
Sara (Debt Camel) says
See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for how the overdrafts should be update after your discharge and how to complain.
The CCJ will not be updated. It will drop off after 6 years, so just before you bankruptcy goes.
The TSB account – you aren’t using this any more, you just want to access the money in it?
Josh says
Thanks for the reply.
I wanted to start using the tsb account as it current account and I’m currently using basic hsbc account. I have only left a very small amount of money in the account just to keep it active
Sara (Debt Camel) says
It is very likely that TSB will not want to give you a full current account.
Colin says
Hi. I am struggling with debt and I started researching entering an IVA or bankruptcy. I have never missed a payment, but can’t seem to make any improvements. I also own a vehicle and some shares in a company(around 70% down at the moment). My question is, if I put the in my wifes name and transfer the shares to her, and become bankrupt or enter an IVA later will that be considered hiding assets? I never thought about bankrupty or IVA before, like i said i never missed a payment, just in the future if I cant keep up with them.
Thank you
Sara (Debt Camel) says
if I put the in my wifes name and transfer the shares to her, and become bankrupt or enter an IVA later will that be considered hiding assets?
yes.
How large are your debts? What sort are they – loans, cards, overdraft…
How much are the shares worth?
Are you buying or renting?
What is your credit rating like at the moment?
Alice says
I have a question and can not find a definitive answer.
Do you know if after the date of default will my default drop off my report that month or do I have to wait until the discharge date of the default?
For example My default for my credit of my Halifax loan is defaulted since the date of bankruptcy in nov 2019. And each month after that date it is in default until the date of discharge in nov 2020. When will the Halifax loan drop off my report? And my report will be clear of debt
I hope this makes sense
Thanks very much
Sara (Debt Camel) says
Defaults are not “discharged”. A debt with a default drops off your credit record six years after the date of default on that record.
My default for my credit of my Halifax loan is defaulted since the date of bankruptcy in nov 2019.
That is what should happen in bankruptcy to ant debts that were not already defaulted before the date you went Bankrupt.
It should th3 n have been marked as satisfied or partially satisfied with a balance owing of zero when you were discharged a year later.
The debt will then disappear from your record 6 years after the date of your bankruptcy- at the same point your bankruptcy also drops off, leaving your with a clean credit record.
SImon says
I am in need of some advice . After caring for my mum and dad , I had to declare myself bankrupt end of jan 2020. During the year , my mum passed away and I inherited a third share of my late parents house . I was confused and immediately told the trustees in bankruptcy who to be Honest did not care what emotional and mental state I was in losing both parents . They issues a letter saying they were taking ownership in full of the asset ( which they couldn’t as it was between myself and 2 brothers ). No other assets were left . I was discharged January 21. The house is only now , dec23 going through a possible sale , possible , and I wondered if they are any timescales I should be aware of for if they cannot take any of my share of the sale ? I have heard of a 3 year rule ? It’s so frustrating as I came out of work as the caring and watching my parents broke me mentally . My debt was around 22k . The trustees did say to me that they would take ALL of my inheritance and if any left , they would return it !!
Sara (Debt Camel) says
Can I ask if you took Debt advice before going bankrupt?
Mia says
Hi there! Was wondering if I could pick your brains…
My partner was made bankrupt in May 2023 he is now in the process of being made redundant. All in he’s entitled to around £11,000 redundancy pay and time in lieu will the official received take all of this funds? He also isn’t sure if they will be paying his wages and may need to claim this all back also.
Thanks
Sara (Debt Camel) says
See https://debtcamel.co.uk/or-redundancy-money/
Jack says
I filled for bankruptcy at the beginning of this year in April. Some of the creditors still sent me letters afterwards but soon stopped after I sent them the relevant information.
However PayPal credit are completely refusing to acknowledge the bankruptcy.
They are calling me every day and keep sending me threatening letters about what will happen if I don’t pay.
I’ve sent letters multiple times and tried to email them but they refuse to help me over email and have clearly ignored my letters.
The official receiver has also contacted them twice on my behalf but they have not stopped.
They keep demanding I speak to them on the phone but there is no obligation for me to do so, nor do I want to.
Why are they so determined to break the rules and ignore the bankruptcy?
I’ve raised it with the ombudsman now but I can’t believe that almost a year later, PayPal is still trying it on.
Sara (Debt Camel) says
If you don’t want to fight this battle, why not just talk to them on the phone? They are in the wrong, you can simply tell them that.
John says
Hi Sara.
I have a question. I’m a considering bankruptcy as my wife has recently left me. I have £40k in unsecured debt and no assets at all as I rent off a family member.
One question I do have is that I have coming up a settlement for a personal injury claim. The monies are all related to injury and not loss of earnings.
Is it right that any payout for ‘injury’ is ring fenced from bankruptcy and will be paid to me? I only ask as this will help me set up a new life.
Sara (Debt Camel) says
That may be OK, but you need full debt advice on bankruptcy, however obvious you think it is that this is your best option. I suggest you talk to National Debtline on 0808 808 4000 about this.
Mark says
Hi Sara,
Really lost a the moment and I’ve read so much on here now and it has been a great help so far.
My predicament is this, I have 54k of credit card debt that has spiralled out of control and I can no longer meet the ridiculous payments. I haven’t made a payment to any of these now since September last year. I have a family home that is shared ownership 75% rental and 25% mortgage and been there 11 years. I am a small Ltd Company director.
I have extensively researched IVA & Bankruptcy and been in touch with a practitioner who has suggested IVA as the best option for me. He proposed offering a full and final payment to the creditors but I don’t have that kind of money sitting about, so he’s proposed a 5 year plan.
My question is more about whether a bankruptcy will be more detrimental to my circumstances than the IVA, i.e loss of our family home, loss of the car (not owned and on a PCP) and of course having to resign my position as a director?
Sara (Debt Camel) says
I suggest you should talk to Business Debtline about your options – https://businessdebtline.org/
Alice says
My partner petitioned for bankruptcy in oct 2019 and was discharged oct 2020. He has had a bit of a messy time since then and does not remember dates and details etc from that time.
He has been contacted by Lowell regarding a small Avon debt and set up an arrangement of £10 a month which he has been paying for a while.
Enter me in his life lol – I’ve helped him to get his credit reports and it looks like avon/lowell was around and defaulted before his bankruptcy. He has emailed Lowell about this and he has also asked for a refund of what he’s paid – would they be likely to give him that money back? He tried to dispute the debt in 2021 but I believe that was based on it being his partner at the time running up the debt in his name rather than about bankruptcy, but like I say he doesn’t remember the details of that time very well. Thanks :)
Sara (Debt Camel) says
he can try. I haven’t heard of anyone trying this.
Elise says
Have spoken to Debt Advice agency & I have no choice other than to apply for bankrupty. Debts of £320,000 due to mortgage shortfall caused by scam in 2011/2012. In April 2017 I got compensation from FSCS of £41,000 due to mis-sold pension. I spent most of it within 18 months on various stuff. Have recently been contacted about a possible claim for remaining pension loss of around £20,000, as 1st FSCS compo didnt cover the whole £70k loss. I know I’ll have to declare this new claim when I apply for bankruptcy. I didn’t notify HMRC about compo in 2017 , as I was advised there was no tax to pay as the award for solely due to pension loss . But when I apply for bankruptcy, I’m worried the Official Receiver may start delving into 1st £41k award, as they’ll realise I’m making a 2nd claim. Will they want to know what I spent it on in those 18 months? Or won’t it be relevant, as it was more than 5 years ago & wouldn’t have covered the amount I owe? Also worried they might say I owe them backdated tax, even though I was told at the time that I wasn’t liable to pay it. I have no assets. Thanks.
Sara (Debt Camel) says
Which advice agency said you had to go bankrupt?
If you do, then there is no point in making any claim as any money would be paid to the OR not to you.
I can’t advise on your tax position – are you just vaguely worried about this or have you been contacted about back tax or has the new claims firm mentioned tax?
Elise says
Hi,
I spoke to National Debtline about a year ago when I was looking into options. They never said I had to go bankrupt, but said due to the amount I owed they couldn’t see any other way of clearing the debt. Regarding the tax position on any compensation payout, it was just something I looked up online, and it was mentioned that tax can sometimes be payable, but was a bit vague on details. No one has said anything about it, I was just doing some checks. Also, the claims firm said they’d dealt with another client who was already going through bankruptcy when they made a mis-sold pensions claim, and the Official Receiver let him keep the money as long as it was invested in a pension, so I’m now in two minds about it. So much conflicting info online.
Sara (Debt Camel) says
the Official Receiver let him keep the money as long as it was invested in a pension
I suggest you should get confirmation of that from the OR after bankruptcy and before making a claim. Also whether this only applies if the mine6 is refunded directly into a pension, or if it applies if the refund comes to you and you choose to put it into a pension. I cannot advise on this and You cannot rely on something a claims company says in this situation.
But is this relevant to your decision about bankruptcy? Why did you not Go bankrupt last year after talking to National Debtline?
Elise says
I did intend to go bankrupt after I spoke to them last year, but then had some family issues which had to take precedence, so I delayed it for that reason. Thanks for your advice Sara. I’m going to wait until after the bankruptcy as suggested, and see what the OR says before deciding if there’s any point in making a claim.
Mel says
Good afternoon
I am 10 months into my bankruptcy
Last January me and hubby sold a buy to let property and the profit was £23,000 each. At this time bankruptcy was not something I thought would ever happen. All the money went into his account and shares were purchased. By the end of March all the money had been lost.
I already had a lot of debt so had no other option than bankruptcy.
I was told I will get a BRU for five years which I totally agree with.
My husband received a letter from the OR asking how he was going to pay back £23,000.
Obviously he can’t pay this. There was absolutely no intent to be dishonest as he wouldn’t have bought any shares if he knew what was going to happen.
He will reply saying he doesn’t have the money. What will happen next? Thanks
Sara (Debt Camel) says
what were these shares?
what is the rest of his financial situation like – does he have any assets? any other debts?
Josh says
Hi again
How do I go about applying for current bank account please? I’ve been discharged for over 2yrs now and currently using basic account. I’ve applied for current account twice since being discharged but all have not been successful. The first one was in the branch to upgrade my basic account but got turned down after credit check, which also affected my credit score after the hard search.
I got notification on my clear score app, offering me to apply for a current account. However this also resulted in no
Thank you
Sara (Debt Camel) says
Why do you want one? What can’t you do with your basic bank account?
Josh says
I figured having a current account is much better when it comes to applying for mortgage in the future and also get access to overdraft
Sara (Debt Camel) says
I suggest you wait another few years.
CB says
I was made bankrupt in 2015 (discharged in 2016) with a property portfolio of over 50 houses. Over the next few years the various mortgage lenders took control of the properties, sent in Receivers of Rent and sold the properties at a significant loss. I was not informed of the property sales until this year, when my accountant asked me about managing my CGT position, and I approached the lenders regarding sales details. As the properties were sold at a loss I would be entitled to the CGT losses to taken forward to offset future CGT gains. However, my accountant states either that CGT losses must be declared within 4 years of the event (this precludes most of the losses as most properties were sold pre-covid), or that the sales be declared to HMRC.
Given that I was not informed of the sale, I could not declare the CGT loss at that time.
My query,.
Does the conveyancing solicitor, or the Receiver of Rent have an obligation to declare the sale of properties to HMRC. If not, what is the mechanism by which HMRC should be informed of the CGT event when it happened.
Cal
Sara (Debt Camel) says
I am sorry but I think you need specialist tax / insolvency advice. I suggest you talk to the professional adviser you discussed bankruptcy with in 2015.
Sally says
Hi
I am wondering if someone can help with a question I have. Last week I had to declare myself bankrupt and I am really worried that I am going to get into trouble as I paid rent by taking cash off a credit card 3 in the last few months. I did it because I was scared to not pay my rent. Will the OR think this is really bad and ask the landlord for the money back? That means I will be in rent arrears and will be evicted. I have two small children.
Thanks
Sara (Debt Camel) says
Can I ask if you took debt advice before going bankrupt?
Safina says
Hi Sarah,
Thank you for such a wonderful guide. I have a personal loan and credit card with natwest. From last year or so my finical condition is not improving and it has caused me stress and depression. I have decided to put my self as bankrupt as I think it will be the wise thing to do. My question is once I filled for bankruptcy the other credit cards i have will I have to give them up? Also what will happen to my accounts will they be closed down automatically? Please if you could help me in this I will much appreciate it.
Sara (Debt Camel) says
Can you say what your total debts add up to? Are you buying or renting? Do you own a car, worth how much?
Kare says
Went bunkrupt and got discharged in Nov 2020. Just lost my job and looking for a new one . I applied for a job as administrator in a small office (no money operations involved just data entry and phone calls, emails etc ) So the interview went well and they said I got the job . When filling paperwork they asked me if ever been declared bankrupt . So I did say yes . And they said I can’t work for them .. I do understand cannot work in a bank but small office . So I worry now I won’t find a job in any reception or offices . Can the employer check if bankrupt cause I need a job and was thinking to lie and don’t admit I was bunkruot
Sara (Debt Camel) says
This is very unusual – see https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/how-bankruptcy-affects-you/check-how-bankruptcy-affects-your-job/. You would be very unlucky if it happens again in a non financial role.
Lying isn’t a good idea but your bankruptcy would no longer show on the Insolvency Service register. If you are asked to show your employer a copy a copy of your credit record (which would be very unusual) it would still show there until Nov 2025.
Maria Sierra says
Hello, I went bankrupt and have been discharged in 2021, however I was asked to mak payments of £64 per month which stopped in 2022 when I started my bachelor’s degree in nursing. I am about to end my econd of three years of nursing and I have been asked to fill out an IPOQ to assess my finances.
I have no income as I don’t have time to work due to already having to work three 12.5 hours shifts per week and attend university once weekly.
My maintenance loan is not much and my partner help is what is keeping us afloat until I qualify next year.
My question is around my partner’s income as theey’ve asked us to include it last time and we are not comfortable with this as they are not taking into account his outgoes and child maintenance payments. Firthermore, last time they said that he should be responsible for 60% of the outgoes as his income was higher than mine at the time.
We have always shared the bills equally especially as I have 4 children and he only has 1. I don’t want my bankruptcy to affect him as this was due to a past marriage.
Should I include his income in the new finances sheet?
Many thanks,
Maria S.
Sara (Debt Camel) says
when did the £64 a month payments start?
Maria Sierra says
Hello Sara, it was August 2021 and it was stopped in August 2022 as I started my degree.
Sara (Debt Camel) says
ok so once an Income Payments Agreement has started, it cannot last more than 3 years. It may be they are just doing a quick check that your situation hasn’t changed eg you have given up your degree and got a job.
I suggest you complete the form as you did last time – of course the expenses will have gone up with the cost of living. And attach a letter saying your situation hasn’t changed since 2022 – you are still at uni and not working.
If they come back and say you need to make some payments, you can challenge that, but it may be this is just a formality and nothing will change.
Maria Sierra says
Thank you for your wisdom, Sara.
Steve says
Good morning,
I’m currently in an Iva and I keep receiving phone calls from them to we need you to agree to this which first time was a my tax claim they promised to send me an agreement with costs and percentage they would take but never received it, so I withdrew their access.
Fast forward 4 months and again Iva people have rung and said that in line with the terms and conditions I have to speak to these solicitors who do a irresponsible lending claim and when I asked the rate etc they said they would send me the paper, which has come and when I’ve rang them “they are having computer issues and will send it out soon but can’t say when” again alarm bells ringing. My question is can my Iva people do this and if they are scams which it seem they are what can I do?
Sara (Debt Camel) says
how large are the debts in your IVA? what sort of debts are these? How much are you paying a month?
Louise Taylor says
Hi there,
Re: Bankruptcy & Tax Refund
I went bankrupt last September 2023. I did my tax return in Jan 2024 for the year April 2022 – April 2023 a year in which I was employed and also self employed. According to HMRC I was owed over 3k in tax for which I had overpaid and so I applied for a refund in April 2024.
As I still have not received my money I called HMRC yesterday and they say there was a note on my account to not pay and that they would be in touch by next year. I asked if I was not going to receive my money but they couldn’t answer. I cannot find any information that is clear online as to whether my refund would go straight to the Official Receiver, or if I can claim part of it or if I have to wait until my bankruptcy is over. I would be grateful if you could help here on what happens to tax refunds when you have been made bankrupt.
Thanks,
Sara (Debt Camel) says
from gov.uk: https://www.gov.uk/guidance/technical-guidance-for-official-receivers/33-monetary-assets
“All bankrupts are requested to complete and sign the TNIDIS form which authorises the payment to the official receiver (or other trustee) of any income tax refunds payable for any year up to and including the tax year in which the bankruptcy order was made to the bankrupt’s estate.”
ZJ says
Hello
Thank you for the website content its much more settling to read then others.
My Question – Bankruptcy Possibility if have less then £20.00 to Live on any rely on a qtly commission and bonus to help through such as / clothes / birthdays / Xmas how much of bonus & commissions will be added to the PA
Sara (Debt Camel) says
if have less then £20.00 to Live on
This what is left after you have paid for household bills? nothing towards debts? for everyday living expenses such as groceriews and transport to work?
how large are the bonuses and commission on average?
how large are the debts at the moment and have you you defaulted on some/all?
Stevie says
Hi, I am a compulsive gambler, I’ve been free from gambling and I’m now in regular contact with Gambler Anonymous for a short period of time.
Over the last 7 months I have spent all my savings and taken out several bank loans and utilised multiple existing credit cards, to finance gambling and also existence. This amounts to somewhere in the region of £70k, makes me sick when I think about it, but I just got in a hole and kept digging.
I can’t pay it back. As I’m in Scotland so facing sequestration, I’ve been researching the internet, but that just left me with more questions…
As the credit was all utilised in a short space of time and I’m only just struggling to make repayments, could the creditors oppose sequestration? (5 loans and 6 credit cards)
Looking at my income/expenditure, take home £2400 I only have around £100 left over towards debts, but I have additional self employed income averaging £10k gross per year. How would this work with paying anything back?
As I was gambling I’m guessing in my applications for the loans I was less than truthful, purpose of the loan,income/expenditure etc. I say guessing because I can’t remember. I read something about debts by fraud, is this likely something have to worry?
Any advice appreciated
Sara (Debt Camel) says
I am sorry I can’t answer questions about sequestration. You could ask on the comments on this blog by a good Scottish Adviser https://www.advicescotland.com/home/sequestration/
But as you have significant self employment income, I suggest you should talk to Business Debtline https://www.businessdebtline.org/ who cover Scottish advice and personal and business debts for the self employed.
A clean start through insolvency may well be the best option for you. But if repaying the debts is feasible, then you could look at making affordability complaints against all the debts. See https://debtcamel.co.uk/gambling-refunds-loans-cards-overdrafts/ for more deatils. Here you would still have to repay the maount you borrowed, but interest would be removed.
Stevie says
Thank you for the information Sara, much appreciated. Unfortunately I think I could only make affordability claims on some of the loans, the credit cards were historic just with no spending on them. So still don’t think I’d manage repayments.
B says
Hello,
I currently have a loan for a car through March Me. The loan company is called starline that provided the finance.
I am 5months into the 60months agreement with them but I am thinking of going bankrupt.
I currently have around 28k of debt (not including the card loan which has 14k left to go)
If I go bankrupt. Can I not include that in my bankrupcy and continue with the payments to them?
I can afford my rent, essential bills food and the car. But the rest of my debt I cannot afford and would prefer bankruptcy. I understand I will still need to make payments to the official receiver for 3 years. I think this might work out at around £100- £130 a month. Providing they allow me to keep the car.
But will the take my car? It’s not a hire purchase scheme. It’s a car finance loan so I would own the car after the remaining months.
Sara (Debt Camel) says
It’s not a hire purchase scheme. It’s a car finance loan so I would own the car after the remaining months.
It sounds like HP to me.
With bankruptcy you have 2 possible problems:
1) whether Starline will repossess the car. You can read the T&Cs of the finance and see if there is a clause in there allowing them to repossess on insolvency. This doesn’t mean they would decide to do this, but it could be a possibility
2) whether the official Receiver allows the c £250/month car payments as an expenses in bankruptcy
Are you renting privately or social?
B says
I think the amount is £263.12 a month.
i rent my uncle’s flat but he still needs full payments for that but is aware of my situation.
Ideally i need my car for work but i could see them saying that i should be getting the bus as i would be paying petrol, insurance, maintenance etc.
could i maybe not include it in my bankruptcy form when i fill it out on the gov website and then just see what the insolvency person says when they do the income and expenditure call after its been completed?
Sara (Debt Camel) says
No you cannot do that. All debts are included in your your bankruptcy, even if they are not listed. And you cannot later change you mind about going bankrupt.
I suggest you should talk to a good debt adviser about your options and their pros and cons – phone National Debtline on 0808 808 4000.
B says
So I would include it in my bankrupcy but just show them that I can afford it and I do need it for work for me and for picking my kid up from her mam’s/school.
Surely if they see I can afford it and I need it for work and for picking my kid up they would allow me to keep paying for it?
Sara (Debt Camel) says
It isn’t a question of “affording it” – it is a question of whether you have any other reasonable options that would be cheaper. Talk to a debt adviser about this and your other options.
James says
Hello,
I have recently had my bankruptcy fall off my file. However there is still a CCJ on there. The CCJ was included in the bankruptcy. How can i get it removed? I spoke with Equifax and they gave my the following advice
“In order to get the CCJ named as part of your bankruptcy marked as settled or removed, you’ll need to contact each of the court with a copy of your Certificate of Discharge. As this information is supplied by them, we’re unable to amend the records on your credit report unless you have the certificate of satisfaction or cancellation.
To get certificate from court you’ll need to provide certificate of discharged as a proof they’ll charge you £15 for this. The fastest and best method to deal with your query is to make sure the update is received from the Registry Trust and they’ll automatically update us with the correct information. You’ll find more information about county courts at http://www.trustonline.org.uk”
If i was to follow their advice, I would file a N244 form pay the £15 along with my bankruptcy information and they will update the information and the CCJ would then be removed. Is this correct?
Sara (Debt Camel) says
what was the date of judgment for the CCJ?
James says
16th April 2019. Meaning that it will be removed from my file in April of next year. I don’t want to wait that long. I have spoken with the Trust Registry and they have basically said that its impossible for it to be taken off even if it was included in the bankruptcy. Conflicting information has caused confusion.
Sara (Debt Camel) says
So far as I know, the only way to get this removed is to apply to the court for a set aside.
It sounds as though Equifax are getting this confused with getting a CCJ marked as satisfied, see https://debtcamel.co.uk/paid-ccj-satisfied/
James says
Is the court set a side the same N244 Form that I mentioned previously?
Sara (Debt Camel) says
that form is for making an application to the court and is used for a setaside.
the chance of this being off your record quickly is about zero. Is this really worth the hassle? And cost for the set aside application?
talk to National Debtline about what to put on the N244 form if you want to other
J says
Hello
Are you able to advise what the current turnaround time is for the bankruptcy application. Is it still 2 days as explained? The GOV website states 28 days.
Thanks in advance J
Sara (Debt Camel) says
It is commonly a lot quicker than that. Have you taken advice on bankruptcy eg from National Debtline on 0808 808 4000? They would be able to say that the current turnaround time typically is.
Matt says
Hello, has anybody any advice how to reduce the Official Receivers valuation of the property. They have just valued the property a great deal higher than an independent local agents desktop valuation?
Sara (Debt Camel) says
is this a house you live in? what are you hoping will happen next?
DENISE says
I have a active IVA. The company take different amounts each month. I have asked few times for all paperwork to be emailed to me from the start, i have not received it. Emailed and called saying i lost my job, explained no money to pay. The person started telling me i needed to pay this amount straight away and different amount for next 6 months. Payment will be more than i can afford. I asked for payment break, they kept telling me i need to pay. Get text daily, emails , i reply saying no money. What do i do now ?. i can’t afford to go bankrupt, i have no money for fees. Help please
Sara (Debt Camel) says
none of that sounds right…
If they are taking money from your bank account, cancel the direct Debit – if there isn’t one, there must be a Continuous Payment Authority (CPA) so you must phone up your bank and cancel that. Do not let them take more than you can afford.
who is the IVA firm? how large are your debts & what were you paying a month before you lost your job?
do you have a house with equity? a car worth over 4k?
Raf says
Hi,
I am in difficult Debt problem that is hanging over my head and drives me crazy. Over last 4 years I have build up just over 50k in debts (Loans and credit cards). That was pretty stressful and unlucky period especially first 2 years. Anyway…
I believe the best option for me is to declare bankruptcy and start fresh – if possible of course. I have divorced 3 years ago and all this are debts in my name. I have an income of around 2800£ monthly after tax etc… paying child maintenance for 3 children 750£/month plus some other cost related to my children. Renting a house with my good girl-friend in a similar life situation (no debts).. our mutual agreement was that I was paying the bills (rent, utilities etc.) approx 1300£ /month and she is providing food for us and her children etc… on top of that I pay all car related costs as I need it for travel to work and contact with my children (school runs etc..). Also mobile bills for myself and my children. Long story short…. I want to go bankrupt as need to ged rid of that stress related to this as soon as possible. I don’t own much to my name. New iPhone 16 Pro Max , TV bought for 1000£ 2 years ago, Thermomix (kitchen robot – mixer/cooker) and scrap value old car. I have already applied for breathing space which ended just before Christmas. Was in the proces of advice with StepChange and they suggesting IVA… but doing some research online I don’t like that idea…
Sara (Debt Camel) says
How much do StepChange say you would pay in an IVA? Why did they not recommend bankruptcy? It would be over sooner
Is £750 a month the standard child maintenance (use https://www.gov.uk/calculate-child-maintenance)? What other child costs are you paying?
Raf says
Well… with Step Change I didn’t go that far. They told me after feeling up online tool they have, that my preferred step was IVA and second choice bankruptcy. And I didn’t get back to them regarding IVA. Will talk to them about bankruptcy. But first wanted to do some research myself and found your website which I find very informative and useful. THANK YOU! ❤️🙏🏻 I was thinking about bankruptcy before but was very afraid of it before. Your approach explained it all a lot. And I do believe that option would be better for me and quicker. I’m only worried about that with my income and I could end up with long term IPA or something like that.
I have no problems communicating with my ex-wife regarding children etc. So child maintenance cost is a mutual agreement. And is based on that online calculator you’ve mentioned above. My 2 older children live with their mum and youngest is spending some bights with me depending of my work schedule. And that amount is based on me saying that they not o them living with me. I also pay for theirs mobiles 10£ each and some pocket money as well. Other cost will be if we going out sometimes to cinema etc.
Anon says
Hello,
Myself and my husband are currently in the process of going bankrupt.
We have a car on hp that costs us £303 a month and its a shitty car not worth a lot, the mot is due currently and the work that needs doing is going to cost more than the car is worth but we need a car.
A family member has offered to buy us a car upto the value of £2000.
Where would we stand? Would we lose a car that was bought for £2000/£2500?
Would we be in trouble for taking the money to purchase a car even though we need one?
Sara (Debt Camel) says
How much do you owe?
Do you both need to go bankrupt and have you taken debt advice on this? If not, talk to National Debtline on 0808 808 4000 about your options. Even if you are sure bank is right, it’s well worth half an hour of time to check with an expert
It shouldn’t be a problem if your relative gifts you the car. Or they could own the car and just let you use and insure it, then it isn’t your property. The Official Receiver should allow the running costs as permitted expenditure if you need a car
zafar says
Hi,
just a couple of questions.
1. Would the OR be surprised or do in depth investigations if i have gone bankrupt a second time in 8 years?…mainly over credit card and unsecured loans approx. £24,000T(nothing dishonest).
2. The household income is confusing… should I just put down my expenses and bills or for the other people living there too?
Sara (Debt Camel) says
An OR can look in depth at whatever they want, but I doubt that by itself a second bankruptcy after 8 years looks like a major problem.
Have you talked to a debt adviser about your situation? There have been changes since you last went bankrupt and it’s possible that you may now qualify for a debt relief order, which is cheaper and simpler. I suggest you talk to National Debtline on 0808 808 4000 about your situation, your options and about the confusing household income and expenses situation.
zafar says
Hi,
I have recently gone bankrupt in February 2025,all approved.
I am quitting my job to be a driving instructor. However part 2 of the driver instructor course requires you to train learner drivers in a suitable car. Unfortunately i dont have the funds to purchase or lease such a vehicle. If my family and friends were to buy such a car and then lent it to me to carry out my training, would that be an issue? The problem i foresee is as a potential driving instructor (PDI) the insurance company would want the vehicle registered in my name (not invoiced) would this raise questions with OR?
Sara (Debt Camel) says
Being the registered keep of a vehicle doesn’t mean you own it so this won’t be a problem. But how much will the insurance be? Do you have any income at the moment?
zafar says
I estimate the insurance to be about £1400.00 per annum. The training period will approximately last 6 to 12 months. The training allows me to charge learner drivers the going fee of about £35 p/h . In a nutshell i will make enough to pay for insurance, wear and tear, franchise fees, fuel and i may keep my current job until i am fully qualified .
However my main concern is with the OR who may think im trying to be clever, when in fact i am just trying to learn a new trade and eventually be in a healthy financial situation.
A suitable vehicle would cost about £7500.00 ,friends and family will fund the cost of the vehicle either through savings or interest free credit cards for 20 months.
So the vehicle will be invoiced to friends/family and my name will be on the registration document for insurance purposes.
Sara (Debt Camel) says
I suggest you talk to Business Debtline on https://businessdebtline.org/. They may have more experience of whether the OR would approve this expenditure or whether you would be likely to be accepted as a franchisee when you are an undischarged bankrupt
Nigel says
Well I am sooooo happy. Today I received an email but I had no phone signal for over 5 hours to read it. It was from the Adjudicator about my application for BR. It mentioned some information I should read. I thought it has been refused but nope…..approved…about 36 working hours after submission…..such relief…..never again to have credit…at 69 with serious health conditions and did a couple of years on DMP but health got worse so decided to retire and bite the bullet. All info was taken from latest statement of DMP and put on the application. Sure I paid the fee and have some cash stashed, I also paid about 2 months extra rent, 2 months exxtra gas and electric but as I was never in arrears I read it as not being an issue. Council tax is presently in credit so I guess the OR may stop me paying that and take that..which is fine as they wrote off about £35700 in debts. Don’t be afraid of doing BR, take your time, be as accurate as you can and as honest as you can. I realised after I submitted I had forgotten 2 little debts…but as the letters have said, if I am being chased then go ahead and send the creditors copies of the Order. As it could be up to 12 weeks before they get to do it.
So much lifted from my mind. Sure it is not going to be a bed of roses over the next year but no creditors knocking on my door.
I have read and re-read so much on this site and found it more open then commercial sites wanting you to sign up…..well done Sarah. Thank you.
steve says
Hi Sara, I just wanted to say a big thank you for all the information and guidance you share on Debt Camel. After many years of struggling and thinking about my options, I’ve now gone bankrupt. It was a tough decision, but reading through your articles really helped me understand the process and feel more confident about taking that step. In the end, it was a lot less daunting than I had imagined. I’m very grateful for the clear and practical help you provide — it made a big relief and difference to me.
Thank you.