Bankruptcy is a form of insolvency that writes off debts you can't afford to repay. When you're bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors.
What is Bankruptcy?
Bankruptcy is a formal insolvency route for individuals with unsecured debts that they cannot pay. Bankruptcy is often the last resort and can be used when no other alternative is suitable.
Once you are made bankrupt you have a duty to provide information to the official receiver and the trustee, and attend their office as and when required.
Who can apply for Bankruptcy?
If you live in England, Wales or Northern Ireland you can apply for bankruptcy if you have debts over £5,000.