Money Advice, Debt Advice & Debt Help
Do you qualify for Bankruptcy

Do you qualify for Bankruptcy

Do you qualify for Bankruptcy

Whether you qualify for Bankruptcy depends on your personal circumstances. For some it can be the best debt solution. For others it may have to be avoided.

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Find out if Bankruptcy is right for you

Find out if Bankruptcy is the right debt solution for you. What if you are a home owner with equity in your property? What if you rent or have no equity in your home? What if you are a company director? To find out more please visit

Do you have to be living in the UK to qualify for bankruptcy?

You do not have to be a British National to go bankrupt in the UK.

That said, your Centre of Main Interest (COMI) normally has to be in the UK. In other words you should currently be living here.

Where you used to live in England & Wales but have now moved abroad, you might still have debts in the UK that you are struggling to pay. If that is the case, you can still apply to go bankrupt. However you must do so within 3 years.

If you do not live in the UK but want to go bankrupt here you will move and live here for the greater part of 6 months. You are then allowed to make your application.

Which debts are Written Off if you go Bankrupt?

Only unsecured debts are included in Bankruptcy. Generally speaking all your unsecured debts will be written off.

You will still have to maintain payments towards any secured debts that you owe. These include things such as a mortgage or secured loan.

Bankruptcy only protects you. Where you have unsecured debts in joint names the other person named on the account is still liable for 100% of the outstanding balance.

If you are struggling with your mortgage bankruptcy could still help. It will take away all of your other unsecured debt payments thus freeing up the cash needed to maintain your mortgage payments.

What happens to your House and Car?

If you are a homeowner it is extremely important to understand the implications for your property before you apply. Where you have equity your home could be at risk.

Bankruptcy might well be right for you if you rent your property. Your landlord will not be told unless you have rent arrears. However your poor credit rating may be an issue if you need to move.

You are allowed to own a car if you go Bankrupt. The main issue is that its value must be £1000 or less. If it is worth more it may have to be sold unless it is required for your business or you need it due to a disability.

If your car is worth more than £1000 you can keep it if a third party can pay the difference between its value and £1000 to the Official Receiver.

Who will find out you are Bankrupt?

Contrary to what you might think if you go bankrupt your name and address are not published in the local newspaper. It is therefore very unlikely that anyone will find out you are Bankrupt unless you tell them.

Having said that your details are recorded in the Insolvency Register. This is public record accessible via the internet. However you name has to be specifically searched. It cannot be discovered by casually scrolling down the list.

Your employer will not be told and so the majority of jobs are not affected. However there are a number of roles that are. If your job involves one of these bankruptcy may not be right for you.

If you live in Northern Ireland your details are still published in the Friday edition of the Belfast Telegraph if you go Bankrupt.

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