How far in debt does a person have to be to go bankrupt in the UK?
I owe way more money than I will ever be able to pay back, am no longer working, and receiving calls and emails daily about payments.
I need to end this and try to get on with my life.
Bankruptcy in the UK is a way to get a fresh start and be relieved of the debts you owe, there are a few things you need to know and be aware of prior to going bankrupt:
- You need £20,000 or more in debt in order to go bankrupt.
- The bankruptcy fees are £680, which can be paid in instalments, but you will not be made bankrupt until the entire fee is paid.
- You cannot include certain debts in bankruptcy, such as student loans, and some court fines, and compensation you may ordered to pay.
- If you own property, or any other asset, it may be taken to be sold to pay into the bankruptcy.
- If you are working and have a surplus of income, you can be required to pay into the bankruptcy for three (3) years.
If you owe less than £20,000, you could look into a DRO or Debt Relief Order, which is similar to bankruptcy, but is for debts of less than £20,000, and the fees are much less.
You can read more about how to get out of debt here.