What is bankruptcy?
Bankruptcy is a legal process where you are declared to be unable to pay your debts.
With bankruptcy you give up assets and control of your finances, either by agreement or court order, in exchange for protection from legal action from a person or business you owe money to.
If you are unable to pay your debts and cannot come to suitable repayment arrangements with a person or business you owe money to, you may volunteer to become bankrupt.
In certain cases a person or business you owe money to can also apply to the court for you to be made bankrupt.
This is a complex issue.
There are alternatives to bankruptcy that might be more appropriate and which should be considered as it can have long term consequences. There are restrictions on the activities and responsibilities of a bankrupt person that you should understand if you are thinking about bankruptcy.
Get legal and financial advice before applying for bankruptcy.
Are all debts covered by bankruptcy?
No, not all debts are covered by bankruptcy. Get legal advice
Where can I get more information?
Last reviewed: 12/11/2015