Bankruptcy is a formal debt solution for those who have an amount of debt which they cannot repay. In a bankruptcy, most debt types are written off. Deciding to go bankrupt is a very serious step that involves fees and can impact different areas in your life, such as your job or home.
If you live in England, Wales or Northern Ireland and you are struggling to repay debts, you can choose to apply for bankruptcy (if you live in Scotland there are alternative solutions). You should always check if there are other ways to deal with your debts before you apply for bankruptcy. In the UK, the term ‘bankruptcy’ only applies to individuals, the equivalent terms for insolvency in businesses is ‘administration’ or ‘liquidation’.