A comprehensive, supportive platform designed to help UK individuals manage debt, calculate surplus income, and navigate the bankruptcy process with ease and clarity. Feeling overwhelmed by debt? Debtrupt gives you a clear plan, the right tools, and the confidence to take back control — step by step.

How long does bankruptcy take?

You are normally discharged 12 months after the bankruptcy order. If you have surplus income, IPA payments can continue for up to 3 years.

For most jobs, bankruptcy has no impact. Some professions (financial services, legal, certain licensed trades) have restrictions — check your contract. You cannot act as a company director.

Can I keep my bank account?

If your account is with a creditor you owe, it may be frozen. Open a basic bank account at a different institution before filing.

What about my partner?

Your bankruptcy does not make your partner liable for your debts, but joint assets/accounts will be reviewed. Your credit files are separate unless you have joint borrowing.

Can I still run a business?

You cannot act as a company director while bankrupt. You can trade as a sole trader, but you must disclose your bankruptcy if your business name differs from your own name.

What happens to my car?

A modest car (usually under £4,000) needed for work or family is normally exempt. A car valued higher — or that is a luxury — may be sold or replaced with a cheaper one.

Will my landlord be told?

Bankruptcy is a public record but your landlord is not usually contacted. Rent arrears are a bankruptcy debt; ongoing rent is your responsibility.

What if I inherit money during bankruptcy?

Inheritance received before discharge becomes part of your bankruptcy estate and goes to your OR. After discharge, you keep it.

Yes, you can travel freely. The OR may ask to keep your passport if there is a significant asset disclosure concern, but this is rare.

An Income Payments Agreement (IPA) is a legally binding agreement to pay your surplus income to the OR for up to 3 years. If you do not agree, the OR can apply to court for an Income Payments Order (IPO).

How is surplus income calculated?

Using the Standard Financial Statement (SFS) framework — your income minus allowable expenses (rent, utilities, food, transport, etc). The surplus above £20/mo is typically requested as IPA payments.

Will my benefits be affected?

Bankruptcy itself does not affect your benefit entitlement. Benefits continue to be paid as normal.

Can creditors still contact me?

Once bankrupt, unsecured creditors included in your bankruptcy cannot pursue you for those debts. Refer any contact to your OR.

What happens to joint debts?

Your joint debtor remains liable for the full amount — even if your share is written off in your bankruptcy. They can pursue the other person for the debt.

Can I get credit during bankruptcy?

You must disclose your bankruptcy if applying for credit over £500. Credit is typically refused during the bankruptcy period.

Understand the process

The whole journey — from filing to discharge — explained, visualised, and demystified.

The journey, end to end

Month 0

File your application

Submit via apply-for-bankruptcy.service.gov.uk. Adjudicator reviews.

Week 1

OR appointed

Official Receiver takes control. Bankruptcy registered.

Month 1

OR interview

Phone interview to discuss your finances, debts, assets.

Months 1–12

IPA & monthly payments

If you have surplus income, an IPA is set up. You pay monthly.

Month 12

Discharge

Most debts written off. Restrictions lifted (except directorship).

Year 3

IPA ends

Any IPA finishes. Remaining debt fully discharged.

What debts are included?

Bankruptcy covers unsecured debts. Some types survive — they are not wiped.

Included — wiped on discharge

Credit cards
Personal loans
Overdrafts
Utility arrears
Council tax (arrears)
Business debts (sole trader)
Personal guarantees

Survives — still owed

CMS (Child Maintenance Service) arrears
Court fines & penalties
Student loans
Fraud-related debts

What assets are exempt?

Traffic-light guide to what you can keep, what could be sold, and what depends.

Keep

Car under ~£4,000
Household goods
Tools of trade
Clothing & bedding

May be sold

Luxury items
Valuable antiques
Second vehicle
Savings & investments

Case-by-case

Business assets
Joint assets
Property with equity

Credit impact over 6 years

Bankruptcy stays on your credit file for 6 years from filing. Here is what to expect.

Year 0

Filing day

Very poor

Year 1

Discharge

Very poor

Year 2

Rebuilding

Poor

Year 3

IPA ends

Poor

Year 4

Slow recovery

Fair

Year 6

Marker drops

Good

Understand the process

The journey, end to end

File your application

OR appointed

OR interview

IPA & monthly payments

Discharge

IPA ends

What debts are included?

What assets are exempt?

Credit impact over 6 years

Common questions

How long does bankruptcy take?

Will I lose my job?

Can I keep my bank account?

What about my partner?

Can I still run a business?

What happens to my car?

Will my landlord be told?

What if I inherit money during bankruptcy?

Can I travel abroad?

What is an IPA?

How is surplus income calculated?

Will my benefits be affected?

Can creditors still contact me?

What happens to joint debts?

Can I get credit during bankruptcy?