This information tells you what happens if you are made bankrupt in England and Wales and about some of the alternatives to bankruptcy.

The information is for general guidance only. If bankruptcy proceedings are taken against you, or you are thinking of making yourself bankrupt, you should seek your own legal or financial advice from a Citizens Advice Bureau, a solicitor, a qualified accountant, an authorised insolvency practitioner, debt counsellor, reputable financial adviser or a debt advice centre.

Other organisations also offer insolvency advice and debt counselling. Some of them are entirely reputable and offer a professional service. However, others are controlled by individuals with no obvious qualifications who appear to be motivated mainly by a desire to exploit an already difficult situation. Beware, particularly of unsolicited approaches through the post or by telephone.

Not Already A Bankrupt

Bankruptcy is a serious matter. You will have to give up any possessions of value and your interest in your home. It will almost certainly involve the closure of any business you run and the dismissal of your employees. Bankruptcy will also impose certain restrictions on you.

You do not have to become bankrupt just because you are in debt. There are alternatives to bankruptcy and you should look into these as soon as possible in case they are more suitable in your situation. Other areas of this web site deal with this.

If You Are Already Bankrupt

The next section explains the bankruptcy procedure. The Official Receiver will give you further instructions. You can still propose a voluntary arrangement which could annul the bankruptcy.

In some circumstances a bankruptcy can be cancelled. Information on annulment of a bankruptcy order is available from your local Official Receiver’s office. You should consider this if you think that you should not have been made bankrupt or if all your bankruptcy debts and the fees and expenses of the bankruptcy proceedings can be paid or secured in full.