Draft my bankruptcy petition →
Last reviewed: June 2026 · For use in England & Wales · eLitigant is a Community Interest Company (No. 16566612), not a law firm. Always check the current official form on GOV.UK before you file, and sign the statement of truth yourself.
In short
There are two routes under the Insolvency Act 1986. As a debtor, you apply for your own bankruptcy online through the Insolvency Service’s adjudicator (no court hearing since 2016); the total fee is £680. As a creditor owed £5,000 or more, you normally serve a statutory demand (Form 6.1 or 6.2), wait 21 days, then petition the court. Bankruptcy is the most severe debt remedy, normally lasting 12 months, so consider alternatives like a Debt Relief Order or IVA first.
The shortcut: eLitigant’s Chris drafts the document for you to this standard, from your details — you check, sign and file. A Community Interest Company, not a law firm; information, not advice.
① Draft it from scratch
Tell Chris your facts — debts, the debtor, the demand served — and Chris drafts your statutory demand or bankruptcy petition from your information.
Before you pay anyone — do as much yourself as you can
Insolvency Practitioners are regulated — but the “advisers”, lead-generators and middlemen around them often are not. Be wary of upfront fees before any work is done, pressure to liquidate quickly, unsolicited calls or texts after you search online, and anyone who isn’t a named, regulated IP. Many early steps — talking to creditors, the moratorium, the paperwork — you can handle yourself with Chris.
When you genuinely need a practitioner, consider a local, independent, qualified Insolvency Practitioner. You are more likely to get a personal service, a named contact and clear, fair fees — rather than being one case among thousands.
Always check they are regulated, on the official register:
• England & Wales — the Insolvency Service’s register of authorised insolvency practitioners (gov.uk)
• Scotland — Accountant in Bankruptcy (AiB)
• Or check membership of the IPA, ICAEW or ICAS.
② Check the draft you’ve written
Already started your debtor’s application or creditor’s petition? Upload it and Chris reviews it against the procedure set out in this guide.
③ You’ve been served — respond
Received a statutory demand or a bankruptcy petition? Run what you received past Chris to understand your options and time limits.
Bankruptcy Petition Guide (2026 Guide)
Bankruptcy is one of the most serious steps in personal insolvency law. It wipes out most of your debts, but it also places significant restrictions on your financial life and can result in the loss of your home and other assets. Whether you are considering applying for your own bankruptcy or you are a creditor seeking to bankrupt someone who owes you money, the process is governed by the Insolvency Act 1986 and the Insolvency (England and Wales) Rules 2016. This guide covers both routes clearly and accurately, so you know exactly what to expect.
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Like a court clerk, we explain how to use the tools — we don’t advise on your case.
When Do You Need a Bankruptcy Petition?
Bankruptcy may be relevant to you in two distinct situations. Which one applies depends on whether you are the person in debt or the person owed money.
As a debtor (applying for your own bankruptcy):
- You owe debts you cannot repay and have no realistic prospect of doing so.
- Your total debts are significant and other options — such as a Debt Relief Order, Individual Voluntary Arrangement, or informal repayment plans — are not suitable for your circumstances.
- You want a clean break. Bankruptcy typically lasts 12 months, after which most debts are discharged.
- You have considered the consequences. Bankruptcy can affect your home, your job (certain professions restrict bankrupts), your credit rating, and your ability to act as a company director.
As a creditor (petitioning to bankrupt someone who owes you):
- You are owed at least £5,000 by an individual (this is the statutory minimum under s.267(4) of the Insolvency Act 1986).
- The debtor appears unable to pay their debts.
- You have already served a statutory demand (Form 6.1 or 6.2) and 21 days have passed without payment, or the debtor has no reasonable prospect of paying.
- Other enforcement methods — such as county court bailiffs, charging orders, or attachment of earnings — have failed or are unlikely to succeed.
If you are a debtor considering bankruptcy, you should also look at whether a Debt Relief Order (debts under £30,000) or an Individual Voluntary Arrangement (structured repayment over 5-6 years) might be more appropriate. Bankruptcy is not the only option and it carries the most severe consequences.
What Bankruptcy Involves
Bankruptcy is a formal insolvency procedure. Once a bankruptcy order is made, an Official Receiver (an officer of the Insolvency Service, which is part of the government) takes control of your financial affairs. Your assets vest in the Official Receiver or a trustee in bankruptcy, who will realise (sell) them to pay your creditors.
Key features of bankruptcy:
- Duration: The bankruptcy period is normally 12 months from the date of the order. After that, you are automatically discharged — meaning most debts are written off.
- Restrictions: During the bankruptcy period, you cannot obtain credit of £500 or more without disclosing your bankruptcy status. You cannot act as a company director. You cannot hold certain public offices.
- Assets: The trustee can sell your assets, including your share of your home. There are some exemptions for basic domestic needs and tools of trade.
- Income payments: If you have surplus income, the Official Receiver can apply for an Income Payments Order (IPO) or an Income Payments Agreement (IPA), which requires you to make contributions for up to three years.
- Not all debts are discharged: Student loans, court fines, child maintenance arrears, and debts arising from fraud survive bankruptcy.
- Public record: Your name appears on the Individual Insolvency Register, which is publicly searchable.
How to Apply for Bankruptcy: Step by Step
The process differs depending on whether you are the debtor applying for your own bankruptcy or a creditor petitioning to bankrupt someone else.
Route A: Debtor’s Petition (Your Own Bankruptcy)
Since 2016, debtors in England and Wales no longer go to court to apply for their own bankruptcy. Instead, the application is made online through the Insolvency Service’s adjudicator system.
1. Check Whether Bankruptcy Is Right for You
Before applying, consider your full financial position. List all your debts, assets, income, and expenditure. If your debts are under £30,000 and you meet the other criteria, a Debt Relief Order may be a less disruptive alternative. If you have regular income and could repay a proportion of your debts over 5-6 years, an Individual Voluntary Arrangement might be more appropriate.
Free debt advice is available from organisations such as StepChange, Citizens Advice, and National Debtline. You do not need to pay a commercial debt management company.
2. Gather Your Financial Information
You will need details of all your debts (creditor names, amounts owed, account references), all your assets (property, vehicles, savings, investments, pensions), your income (employment, benefits, other sources), and your monthly expenditure. The online application asks for all of this in detail.
3. Complete the Online Application
Go to the gov.uk bankruptcy application service. The application is completed entirely online. You will need to create an account and work through each section, entering your financial information accurately. Do not guess figures — inaccurate information can lead to your discharge being suspended or criminal prosecution for fraud.
4. Pay the Fee
The total fee for a debtor’s bankruptcy application is £680. This is made up of a £130 court fee and a £550 administration fee payable to the Insolvency Service. You can pay in instalments before submitting the application — the system allows you to make payments over time until the full £680 is reached. Once paid, you can submit. The £550 administration fee cannot be waived. Contact hello@elitigant.
5. Submission and Adjudicator Decision
Once submitted, your application goes to an adjudicator (not a judge). The adjudicator reviews your application and decides whether to make a bankruptcy order. This usually happens within 28 days, though it can be faster. You do not attend a hearing — the decision is made on the papers.
If the adjudicator makes a bankruptcy order, you are bankrupt from that date. If the application is refused, you will be told the reasons and may be able to resubmit with corrected information or apply for a review.
6. Official Receiver Contact
After the order is made, the Official Receiver will contact you — usually within a few working days. You will be interviewed (often by telephone) about your financial affairs. You must cooperate fully. Failure to cooperate is a criminal offence and can result in your discharge being suspended.
Route B: Creditor’s Petition
If you are a creditor owed £5,000 or more, you can petition the court to make a bankruptcy order against the debtor. This is a more adversarial process and involves court proceedings.
7. Serve a Statutory Demand
Before you can present a creditor’s petition, you must normally serve a statutory demand on the debtor. This is a formal written demand for payment. Use Form 6.1 (for debts payable immediately) or Form 6.2 (for debts payable in the future). The demand must specify the amount owed and give the debtor 21 days to pay, secure the debt to the creditor’s satisfaction, or compound for it.
If the debtor pays within 21 days, the matter ends. If they do not, you have evidence of their inability to pay, which supports your petition.
8. Wait 21 Days
You must wait at least 21 days after service of the statutory demand before presenting your petition. During this period, the debtor may apply to set aside the statutory demand — they have 18 days from service to do so.
9. File the Creditor’s Petition
If the 21 days pass without payment (and the demand has not been set aside), you file a creditor’s bankruptcy petition at court. The petition is filed at the court for the area where the debtor resides or carries on business. You must pay the court fee and a deposit towards the Official Receiver’s costs. The petition must be verified by a statement of truth.
10. Court Hearing
The court lists the petition for a hearing. The debtor is served with the petition and can attend to oppose it. At the hearing, the court may make a bankruptcy order, dismiss the petition, or adjourn for further evidence. If the debtor can show they have a genuine dispute about the debt on substantial grounds, the court should normally dismiss the petition — bankruptcy proceedings are not a tool for debt collection where the debt is genuinely disputed.
Key Deadlines
| Stage | Deadline |
|---|---|
| Statutory demand — debtor must respond | 21 days from service |
| Debtor’s application to set aside statutory demand | 18 days from service |
| Adjudicator decision (debtor’s petition) | Usually within 28 days of submission |
| Bankruptcy period (automatic discharge) | 12 months from order |
| Income Payments Order/Agreement | Up to 3 years from order |
| Restriction on acting as company director | Duration of bankruptcy period (12 months unless extended) |
What Happens After a Bankruptcy Order
Once a bankruptcy order is made, the following happens in sequence:
Immediate effects:
– All your assets vest in the Official Receiver (or a later-appointed trustee in bankruptcy). You no longer own them, although you can continue to use essential household items.
– Your bank accounts may be frozen. You should open a basic bank account with a different bank if needed.
– You must stop paying your unsecured creditors. They can no longer pursue you for those debts.
– Any legal proceedings against you for debts covered by the bankruptcy are automatically stayed.
During the bankruptcy period (12 months):
– The Official Receiver investigates your financial affairs and may sell assets to pay creditors.
– If you own property, the trustee has three years from the date of the order to deal with your interest in it. If they do not act within three years, your interest reverts to you.
– If you have surplus income, you may be asked to enter into an Income Payments Agreement or face an Income Payments Order.
– You must disclose your bankruptcy status when applying for credit of £500 or more.
– You cannot act as a company director without the court’s permission.
After discharge (12 months):
– Most debts are written off. You are released from the obligation to repay them.
– The restrictions of bankruptcy end (unless a Bankruptcy Restrictions Order or Undertaking has been made, which can extend restrictions for 2-15 years in cases of culpable conduct).
– Your name remains on the Individual Insolvency Register for three months after discharge, then is removed.
– Your credit rating will be affected for six years from the date of the order.
Common Mistakes
1. Assuming Bankruptcy Clears All Debts
It does not. Student loans, court fines, child maintenance, debts arising from fraud, and secured debts (like a mortgage) are not discharged by bankruptcy. Check which of your debts will actually be written off before applying.
2. Hiding Assets or Income
The Official Receiver will investigate your financial affairs thoroughly. Deliberate concealment of assets or income is a criminal offence under s.354 of the Insolvency Act 1986. It can result in prosecution and your discharge being suspended indefinitely.
3. Not Considering Alternatives First
Bankruptcy is the nuclear option. If your debts are under £30,000, a Debt Relief Order costs only £75 and has similar effect. If you have regular income, an IVA lets you keep your home and repay a proportion over 5-6 years. Always explore alternatives before committing to bankruptcy.
4. Applying as a Creditor When the Debt Is Disputed
If the debtor has a genuine dispute about the debt on substantial grounds, the court will not make a bankruptcy order. Using bankruptcy proceedings as a debt-collection tool when there is a real dispute is an abuse of process and can result in costs being awarded against you.
5. Failing to Cooperate with the Official Receiver
Once the order is made, you have a legal duty to cooperate. This means attending interviews, providing documents, and answering questions honestly. Non-cooperation is a criminal offence and will delay or prevent your discharge.
6. Not Dealing with Joint Debts
If you have joint debts (for example, a joint loan with a partner), your bankruptcy only covers your liability. Your joint debtor remains fully liable for the whole debt. Bankruptcy does not protect the other person.
7. Ignoring the Impact on Your Home
If you own a property (or have a share in one), the trustee can force a sale. If you have a family, the court will usually allow 12 months before ordering a sale, but after that period, the interests of creditors take priority. Plan for this before applying.
8. Creditors Missing the Statutory Demand Step
A creditor’s petition will normally be dismissed if you have not first served a valid statutory demand and waited 21 days. Do not skip this step. The demand must be properly drafted and properly served.
The Rules That Apply
Bankruptcy in England and Wales is governed by a clear statutory framework:
- Insolvency Act 1986 — the primary legislation. Part IX deals with bankruptcy of individuals. Key sections include s.264 (who may petition), s.267 (grounds), s.271 (proceedings on debtor’s petition), s.278 (commencement of bankruptcy), s.283 (definition of bankrupt’s estate), s.306 (vesting of estate in trustee), s.335A (rights of occupation — family home), s.354 (offence of concealment), and s.279 (duration and automatic discharge).
- Insolvency (England and Wales) Rules 2016 — the detailed procedural rules, including forms, service requirements, and court procedures.
- Enterprise Act 2002 — introduced the 12-month discharge period (previously three years) and the regime for Bankruptcy Restrictions Orders.
- Insolvency Act 1986, s.263K-263O — provisions for the online debtor’s petition process via the adjudicator.
The £5,000 minimum for a creditor’s petition is set by s.267(4) of the Insolvency Act 1986. The court has wide discretion under s.266 and s.271 to refuse a petition if the circumstances warrant it.
Related Court Forms & Guides
- Form N260: Statement of Costs — the costs schedule used at summary assessment.
- Form N244: Application Notice — the form for interim applications.
- Start a Money Claim Online (OCMC) — where most civil money claims begin.
- Particulars of Claim — setting out the basis of your claim.
- Civil Court Forms Index — every civil court form guide in one place.
How Chris Can Help
Going through bankruptcy is stressful, and the paperwork can feel overwhelming — especially when you are dealing with financial pressure at the same time. Chris, the eLitigant case assistant, can help you prepare your bankruptcy application accurately and efficiently.
Chris can help with:
- Reviewing your financial position to confirm whether bankruptcy is the right option or whether a DRO or IVA might be better suited.
- Preparing your online application — ensuring all figures are accurate and all sections are completed properly, reducing the risk of refusal or delay.
- Drafting a statutory demand if you are a creditor, ensuring it complies with the Insolvency Rules and is in the correct form.
- Preparing a creditor’s petition and supporting evidence if you need to go to court.
- Responding to a statutory demand or creditor’s petition if you are on the receiving end and need to apply to set aside the demand or oppose the petition.
- Identifying which debts survive bankruptcy so you have a realistic picture of what will and will not be discharged.
Chris works from the law as it stands, using the Insolvency Act 1986 and the current rules. Every document is tailored to your specific circumstances.
Start My Case · A: If you are applying for your own bankruptcy (debtor’s petition), the total fee is £680 — comprising a £130 court fee and a £550 administration fee. You can pay in instalments before submitting your application. The £550 administration fee cannot be waived.
Q: How long does bankruptcy last?
A: The standard bankruptcy period is 12 months from the date of the order. After 12 months, you are automatically discharged, meaning most debts are written off. However, if you fail to cooperate with the Official Receiver or your conduct is found to be culpable, your discharge can be suspended or a Bankruptcy Restrictions Order can extend restrictions for up to 15 years.
Q: Will I lose my home?
A: Possibly. If you own a property or have a share in one, the trustee in bankruptcy can sell it or your interest in it to pay creditors. If family members live in the property, the court will usually allow 12 months before ordering a sale. After 12 months, the interests of creditors generally take priority under s.335A of the Insolvency Act 1986. The trustee has three years to deal with your interest in the property — if they take no action within three years, your interest reverts to you.
Q: Can I still work if I am bankrupt?
A: In most jobs, yes. However, certain professions and roles restrict or prohibit people who are bankrupt — including solicitors, accountants, financial advisers, estate agents, company directors, and some public office holders. Check whether your profession has any restrictions before applying.
Q: What is the minimum debt for a creditor to petition for my bankruptcy?
A: A creditor must be owed at least £5,000 to present a bankruptcy petition against you. This is set by s.267(4) of the Insolvency Act 1986. If the debt is below £5,000, the creditor must use other enforcement methods.
Q: Can I go bankrupt if I own a business?
A: Yes. Sole traders and partners can be made bankrupt. The bankruptcy will affect the business assets because they belong to you personally. If you operate through a limited company, the company is a separate legal entity — the company cannot be made bankrupt (it would be wound up instead), but you personally can be made bankrupt for your own debts.
Q: What happens to my bank accounts?
A: Your existing bank accounts will usually be frozen when the bankruptcy order is made. The Official Receiver will take control of any money in them. You should open a basic bank account with a bank where you do not already have accounts, so that you can continue to receive income and manage day-to-day expenses during the bankruptcy period.
Q: Can I apply for bankruptcy if I live abroad?
A: You can apply for bankruptcy in England and Wales if you are domiciled here, or if you have had a residential or business connection with England and Wales within the three years before your application. The rules on jurisdiction are in s.265 of the Insolvency Act 1986.
Frequently asked questions
Who can present a bankruptcy petition?
There are two routes. As a debtor, you apply for your own bankruptcy online through the Insolvency Service’s adjudicator system — since 2016 you no longer go to court for this. As a creditor, you can petition the court to bankrupt a debtor who owes you at least the statutory minimum set out in the Insolvency Act 1986, where the debtor appears unable to pay.
What is a statutory demand and when do I need one?
A statutory demand is a formal written demand for payment that a creditor normally serves before presenting a creditor’s petition. Use Form 6.1 for debts payable immediately or Form 6.2 for debts payable in the future. It must state the amount owed and give the debtor a set period to pay, secure or compound the debt before a petition can follow.
How long does bankruptcy last?
The bankruptcy period is normally 12 months from the date of the order, after which you are automatically discharged and most debts are written off. Restrictions can be extended in cases of culpable conduct through a Bankruptcy Restrictions Order or Undertaking.
Are all debts cleared by bankruptcy?
No. Student loans, court fines, child maintenance arrears, debts arising from fraud, and secured debts such as a mortgage are not discharged by bankruptcy. Check which of your debts would actually be written off before applying.
Should I consider alternatives before bankruptcy?
Yes. Bankruptcy carries the most severe consequences. If your debts fall under the threshold for a Debt Relief Order, that may be less disruptive; if you have regular income, an Individual Voluntary Arrangement may let you keep your home and repay a proportion over several years. Free debt advice is available from organisations such as StepChange, Citizens Advice and National Debtline.
Can I petition to bankrupt someone over a disputed debt?
No. If the debtor has a genuine dispute about the debt on substantial grounds, the court should not make a bankruptcy order. Using bankruptcy proceedings as a debt-collection tool where the debt is genuinely disputed can be an abuse of process and may result in costs being awarded against you.
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Related guides: N1 claim form guide · Charging order guide · N245 application to vary payment · The Director’s Liquidation & Restructuring Strategy · All civil court forms
See also: DIY company insolvency & rescue — every option compared, and how to cut the insolvency-practitioner fees.
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