How to go bankrupt

If you’ve decided that bankruptcy is the best way to deal with your debts, you’ll need to fill in the online application form.

The form is split into eight sections, so it may take some time to complete. Don’t worry – you don’t need to finish it in one sitting. You can save your progress, take a break and come back later.

You have to complete the sections in order. In other words, you can’t move onto section two until you’ve completed section one.

You’ll need details of your income, living expenses and debts. So, before you begin, it’s a good idea to gather together documents like:

• wage slips
• benefits or pension statements
• bills
• letters from bailiffs

When your bankruptcy order is made, your bank accounts may be frozen straight away. This means you won’t be able to access the money in those accounts.

Before you submit your bankruptcy application, take out enough money to cover your costs for the next few weeks.

The adjudicator will either reject your application or make a bankruptcy order. They have 28 days to make their decision.

If they need any additional information from you, they’ll be in touch. They’ll then have an extra 14 days to make their decision.

If they reject your application, they’ll send you a notice of refusal. You’ll also get a refund of £550 (£130 will be kept for the adjudicator’s fee).

If you disagree with the decision, you can ask for it to be reviewed.

If the review doesn’t go in your favour, you can appeal to the court using an N161 form.

Once you’re declared bankrupt, your money and property will come under the control of the official receiver. They’ll be in touch with you within two weeks of the bankruptcy order being made to arrange an interview. This will usually take place over the phone.

The official receiver will make sure your money and property is distributed among the people you’re indebted to. You need to cooperate with the official receiver to make sure they can do their job.

During your bankruptcy, you should tell the official receiver if:

• your income changes
• you receive any assets e.g. a vehicle or a property
• you receive a windfall e.g. inheritance, lottery win, unexpected bonus, compensation, life insurance payout

After a year of your bankruptcy order being made, you’ll usually be discharged from bankruptcy.

This releases you from any debts covered by your bankruptcy and removes the bankruptcy restrictions (unless a bankruptcy restrictions order/undertaking has been made).