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Personal Bankruptcy

Personal Bankruptcy · Stourbridge

Write off your personal debt and make a genuine fresh start

If your personal debts have become unmanageable and there is no realistic way forward, bankruptcy may be the most effective route to a genuine fresh start. For many people it is not the catastrophe they fear – it is a legal process that writes off what you owe and gives you the chance to rebuild. The debt ends. Life continues.

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What is Personal Bankruptcy?

Personal bankruptcy is a formal legal process that allows individuals who cannot pay their debts to have those debts written off and make a fresh start. In England and Wales, bankruptcy is governed by the Insolvency Act 1986 and administered through the Insolvency Service.

When you are made bankrupt, an Official Receiver is appointed. Creditor contact stops immediately. The Official Receiver investigates your financial affairs and takes control of your assets. Once you are discharged from bankruptcy – typically after twelve months – the remaining unsecured debts are written off and you are free to start again.

The key features of personal bankruptcy are:

  • Most unsecured debts are written off on discharge, typically after twelve months
  • Creditor contact, enforcement action, and bailiff visits stop immediately
  • You can continue working and trading in most cases during the bankruptcy period
  • Certain debts – including student loans, child support, and some court fines – are not written off
  • Bankruptcy is recorded on your credit file for six years from the date of the order

Ready to understand your options?

Free, confidential, no obligation — everything we discuss is completely private.
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What Happens to Your Home and Assets?

This is the question most people ask first. The answer depends on the nature and value of your assets.

Your home

If you own a property, the trustee will assess its equity. If there is no equity – or the equity is minimal – the property may be left with you. If there is significant equity, the trustee will look to realise it for the benefit of creditors. Many people are surprised to find their home is less at risk than they feared. We will give you a clear assessment of your specific position during the Clarity Consultation.

Your car

A vehicle of reasonable value needed for work is generally protected. High-value vehicles may be at risk. We will advise you on your specific position.

Your income

You keep enough income to meet your reasonable domestic needs. If your income is above that threshold, you may be required to make contributions. Your ability to work and earn is not affected by bankruptcy in most occupations.

  • Fixed Fees

    You know the full cost before committing. No surprises, no hidden extras.

  • Application fee £680

    The Government charges £680 to apply for bankruptcy. We guide you through the application at no additional charge.

  • Free Clarity Consultation

    The first conversation costs nothing. Everything you discuss is confidential.

Real outcomes

Bankruptcy case studies

Genuine cases. Identities protected.
HMRC £28k Personal Overdraft £12k

£40,000

Bankruptcy · Personal Debt
A sole trader was in serious financial difficulty with HMRC enforcement officers at the door and the bank threatening action on a £40,000 debt including personal tax and overdraft. We elected for personal bankruptcy, which immediately stopped all enforcement and wrote off 100% of the debt on discharge. The client continued trading during the bankruptcy […]
Enforcement stopped immediately. 100% of debt written off on discharge.
Personal Guarantee £80k

£80,000

Bankruptcy · Personal Debt
A self-employed builder had given a personal guarantee to the bank for £80,000. His equity position meant the bank had no viable route to pursue his home.
Full £80,000 written off. Home retained. Continued trading throughout.
Council Tax £7k Credit Cards £18k Utility Arrears £5k

£30,000

Bankruptcy · Personal Debt
Unsecured personal debt including credit cards and council tax arrears had become unmanageable, with no realistic prospect of repayment.
100% of debt written off. Discharged after twelve months. Credit rebuilding begun.
Common questions

Personal Bankruptcy FAQs

  • Can I keep my bank account if I go bankrupt?

    Your existing bank accounts will likely be frozen when the bankruptcy order is made. However, you are entitled to open a basic bank account during bankruptcy and most major banks offer these. We will advise you on the practical steps to take before the bankruptcy order is made to minimise disruption to your day-to-day finances.

  • Can I continue to work if I go bankrupt?

    In most occupations, yes. Bankruptcy does not automatically affect your employment. Some professions – including certain financial services roles, solicitors, and some public sector positions – have restrictions on bankrupts. If your job may be affected, we will flag this clearly before you proceed.

  • Will bankruptcy stop bailiffs and enforcement action?

    Yes. The bankruptcy order creates an automatic stay on most enforcement action. Bailiff visits, county court judgments, and creditor contact must stop once the order is in place. This is often one of the most immediate and significant reliefs for people in serious financial difficulty.

  • How long does bankruptcy affect my credit rating?

    The bankruptcy is recorded on your credit file for six years from the date of the order. After discharge – typically after twelve months – you can begin to rebuild your credit. Many people find their credit position starts to improve meaningfully within two to three years of discharge.

  • What is the difference between bankruptcy and an IVA?

    Bankruptcy writes off your debts after twelve months but involves greater scrutiny of your assets and some restrictions during the bankruptcy period. An IVA involves repaying a portion of your debt over five years through monthly payments, with the remainder written off at the end. Bankruptcy generally suits people with lower incomes and fewer assets; an IVA suits those with a regular income who want to avoid bankruptcy’s restrictions and protect their assets. We will help you weigh both options based on your specific circumstances.

  • Can a sole trader go bankrupt?

    Yes. Sole traders are personally liable for their business debts, so personal bankruptcy covers both personal and business liabilities. This can be a significant advantage – it deals with the full picture in a single procedure. If you are a sole trader with mixed personal and business debt, we will help you understand how bankruptcy applies to your full situation.

Why choose us

Bankruptcy Specialists in Stourbridge

We guide every personal bankruptcy case personally, working with licensed insolvency practitioners where formal appointments are required. No handoffs, no call centres, and a straight answer on whether bankruptcy is the right route for your situation.

  • Working with licensed insolvency practitioners

    All formal bankruptcy appointments are handled by licensed practitioners regulated by the IPA. You get the personal guidance of Stourbridge Insolvency with the full backing of regulated expertise.

  • Every case guided by Stourbridge Insolvency

    No handoffs, no call centres. When you call, you speak to Stourbridge Insolvency. Our team stays with you from the first call through to discharge.

  • Your home may be safer than you think

    We give you a clear and honest assessment of your asset position from the very first call. Many people are surprised to find their home is less at risk than they feared.

  • You can keep working and trading

    Bankruptcy does not stop you working or running a business in most cases. We will advise you clearly on any restrictions that may apply to your specific situation.

  • Based in Stourbridge, local to the Black Country

    Stourbridge Insolvency works primarily across Stourbridge, Dudley, Halesowen and the wider West Midlands. Accessible, local and available when you need us.

  • Free, confidential Clarity Consultation

    The first conversation costs nothing. No obligation, no fee. You leave with a clear picture of where you stand.

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