Which debts can be cleared by bankruptcy? This section explains which debts can be discharged by bankruptcy and which debts cannot. Listed below are the types of debt you can expect bankruptcy to cover and those that will be exempt. Whether bankruptcy is for you will largely depend upon the nature of the debt. As always, seek bankruptcy debt advice for an impartial one-on-one consultation – visit bankruptcy assistance.
Bankruptcy debt solutions include:
- Utility bills
- Back rent
- Some CCJs
- Credit card debts
- Loans from family and friends
- Newspaper and magazine subscriptions
- Legal, Medical and Accounting bills
- Most unsecured loans where there is no collateral
Non-dischargeable Debts
The Government has deemed some debts non-dischargeable, which cannot be cleared through bankruptcy. They include:
- Fines and penalties
- Secured debts/loans
- Last minute debts (where a soon-to-be bankrupt person dishonestly uses credit)
- CSA claims for child support and other family/domestic legal liabilities
- Liabilities under a confiscation order made under S.1 of the Drug Trafficking Act 1986 or S.71 of the Criminal Justice Act 1988
- Most educational loans that fall outside of the Insolvency Act 1986
Bankruptcy Court Costs
- Filing for bankruptcy will require you to pay a £325 deposit for court administration costs
- A possible £150 court fee (means tested).
- £7 if you swear in the Statement of Affairs
Return to Debt homepage.
