What debts are included in bankruptcy?
#bankruptcy#included debts#excluded debts#secured debts
Most unsecured debts are included in bankruptcy and are written off when you are discharged — usually after 12 months.
Debts usually written off
- Credit cards and store cards
- Personal loans and overdrafts
- Catalogue debts
- Utility arrears
- Council tax arrears (current and previous tax years)
- HMRC debts (income tax, VAT, self-assessment)
Debts NOT written off by bankruptcy
- Student loans (Plan 1/2/4/Postgrad)
- Court fines and penalties
- Child maintenance and arrears
- Debts obtained by fraud
- Some compensation orders
Secured debts
A mortgage or secured loan is not written off by bankruptcy — the lender can still repossess if you fall behind. If you own a home with equity, the official receiver may sell it to pay creditors, so take advice before applying if you own property.
Get confirmation for your case
Always confirm your specific debts with a free adviser such as StepChange before you apply, as some creditors and debt types have particular rules.
England & Wales only. General information, not legal advice.
Remember: Debtrupt provides practical guidance, not legal advice. For formal advice, contact a regulated solicitor or a free debt charity such as StepChange (0800 138 1111), National Debtline (0800 808 4000), or Citizens Advice.