You can be made bankrupt if you:
- do not pay your debts and you owe £5,000 or more
- break the terms of an Individual Voluntary Arrangement (IVA)
- gave information that was not true to get an IVA
There is a separate guide if you choose to declare yourself bankrupt.
Before you are made bankrupt
Before you can be made bankrupt, the people you owe (your ‘creditors’) have to try other legal ways to get you to pay your debt. This is usually a statutory demand or a court judgment.
What happens if you are made bankrupt
If you are made bankrupt:
- your assets can be used to pay your debts
- you will have to follow bankruptcy restrictions
- your name and details will be published on the Individual Insolvency Register
If you are being made bankrupt, you can get free advice:
- by calling National Debtline
- from online, face-to-face and phone services accredited by the Money Advice Service
If you do not want to be made bankrupt
You may be able to oppose your bankruptcy petition.