Bankruptcy in the United Kingdom
You can file for bankruptcy in the United Kingdom if you are unable to pay your debts. It is also possible for your creditors to petition to force you to file for bankruptcy if you owe more than £5,000.
Filing for bankruptcy costs £680 in the United Kingdom. This may relieve some financial pressure. It is possible to exempt certain items from the bankruptcy process and maintain enough income to live on.
Bankruptcy could affect your credit rating for several years and might even result in you losing your home or your tenancy if you rent. If you own a business, you may be forced to sell some of your assets as part of the bankruptcy process. If you do not have UK citizenship, bankruptcy could have implications for your right to remain in the country.
There are many consequences from going bankrupt. It is important to work with a bankruptcy lawyer to determine whether this is the right option for you. Many different factors are at play, for example a person’s work contract might stipulate that they cannot declare bankruptcy and continue working. This is true of many regulated professions or people who work in finance roles.
It is therefore vital to engage professional help at an early stage of bankruptcy proceedings in the United Kingdom.