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Bankruptcy - England and Wales

Bankruptcy is a way of dealing with debts that you cannot afford to repay. It is a serious step, but in some situations it may be the best way to deal with debts. If you owe a lot of money or you can only afford to make very small payments, bankruptcy can offer you a fresh start.

If you have assets such as a home you own, or a vehicle, bankruptcy can put these at risk. You may also have to make payments for three years as part of your bankruptcy if you have money left over after your living costs.

Bankruptcy only deals with your own debts so if you have joint debts with another person, they will still have to pay the whole debt, unless they go bankrupt as well.

To make yourself bankrupt, you must pay two fees of £175 and £525.  Your bankruptcy will normally last for up to one year. Usually debts that have not been paid are then written off and you are ‘discharged’ from the bankruptcy. 

My Money Steps will tell you if bankruptcy is an option for you, and what you need to do. Start My Money Steps to find out.

 

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