Bankruptcy for self-employed people

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Bankruptcy is an option that may need to be considered if you can’t pay your debts and there is little prospect that your circumstances will improve. Bankruptcy is a way of becoming debt free if you can’t afford to repay your debts. You can choose to make yourself bankrupt or one of your creditors can petition the Court in order to force you into bankruptcy (subject to them being owed at least £5,000).

To become bankrupt you will need to pay a fee of around £680, this covers application fee and the bankruptcy deposit. You will then need to attend a meeting with the Official Receiver and discuss your circumstances in detail. The Official Receiver will determine the terms of your bankruptcy including – the length of time you will remain bankrupt and what will happen to your assets.

For more information about our Business Finance solutions contact us today.

CALL 0800 1804 933

Problems with Bankruptcy

In most cases, all your debts will be written off under the bankruptcy order. Despite this obvious attraction, bankruptcy might not be the best debt solution for you especially if you are self-employed. You should make sure you have considered all other debt solutions including Self- Employed IVA’s, before applying to be made bankrupt. Some of the main problems and disadvantages with bankruptcy include:

  • Some of your personal assets may be sold by the Official Receiver

  • You may lose your home

  • If you run a business, it will almost certainly need to be closed down

  • You may still be required to make monthly payments for up-to 3-years

  • If you are renting a property, your landlord will be informed

  • Notice of the Bankruptcy will be advertised

  • You will not be able to obtain new credit (without informing the lender)

  • You will not be allowed to be a Company Director

  • Your credit rating will be affected for at least 6-years

Brendan Hogan
Brendan HoganInsolvency Practitioner
Brendan has worked in the Insolvency Industry since 1997 and specialises in Corporate Insolvency work. He is Licensed to take formal Insolvency Appointments by the IPA.
Call Brendan on 01204 255 051 for immediate help or, email at the address above

About Anderson Brookes

I already have a CCJ is it too late to take advice?2018-02-18T19:23:32+00:00

No. Call us straight away on 0800 1804 933, in most cases we can prevent CCJ’s from being enforced by bailiffs if we are instructed early enough.

Can you help with Bailiffs?2018-02-18T19:23:03+00:00

Yes. If we are instructed early enough, we are usually very successful in stopping bailiffs from removing assets. We have written a useful guide to the powers of bailiffs on this website; please visit our Help Guide section. Whilst the Help Guide is very useful, it is no substitute for specific personal advice. Please call us now and speak with a qualified Adviser.

In most cases, we are able to speak directly with the bailiff; once they understand your circumstances, they may allow us extra time to put a repayment plan together. If the bailiff is not receptive to our requests, we may be able to help you get a Court Order blocking bailiff enforcement action for around one month. This should give us all the time we need to put a formal repayment plan in place.

Where can I check out Anderson Brookes?2018-02-18T19:20:15+00:00

Before discussing your financial affairs, we believe that you should check the credentials of the individual or organisation you intend speaking with. We are no different:

Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority; our FCA registration number is 669796. You can confirm our details on the FCA website

Anderson Brookes Insolvency Practitioners Ltd is a firm of Insolvency Practitioners. Brendan P Hogan is licensed to act as an Insolvency Practitioner in the UK by the Insolvency Practitioners Association; licence Number 101680. You can confirm the licence details at

Anderson Brookes Ltd and Anderson Brookes Insolvency Practitioners Ltd are both registered at 4th Floor, Churchgate House, Bolton, Lancashire BL1 1HL

How are Anderson Brookes Regulated?2018-02-18T19:21:02+00:00

Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA). Anderson Brookes Insolvency Practitioners Ltd is a separate company. Brendan P Hogan is Licensed to act as an Insolvency Practitioner by the Insolvency Practitioners Association (IPA).

Can you provide advice over the phone?2018-02-18T19:22:25+00:00

Yes. Although we are based in Bolton, Lancashire, we deal with clients throughout the UK. Most of the work we do can be completed over the phone. You will not need to visit our offices; we can however, arrange to come and see you at your home or business if you prefer.

Do you offer a Free Consultation?2018-02-18T19:21:54+00:00

Yes. We offer a Free Consultation in all cases. We will ask questions to help us understand your circumstances and provide you with a specific recommendation. Should you decide to move forward with any recommendation we have made, we will confirm any costs involved in writing, before accepting your instructions. In some cases, there will be no charge made by Anderson Brookes for the services we provide.

Do I need an appointment?2018-02-18T19:24:00+00:00

No. You do not need to arrange an appointment, simply call us on 0800 1804 933 and we’ll be able to help. If you prefer, we can arrange to call you at a time convenient to you.

Questions about Bankruptcy

Will I need to make any monthly payments when I’m bankrupt?2018-01-23T16:55:22+00:00

In some cases, you may be subject to an Income Payment Order. This would mean you could are required to make monthly payments to the Official Receiver for up to 3-years after the bankruptcy order is made. This will only normally apply if you have a surplus income of over £20 per month.

Can I give my assets to my partner before going Bankrupt?2018-01-23T17:34:33+00:00

No. There are very strict rules in place relating to disposal of assets. Whilst you are free to sell your assets before being made bankrupt, you must be able to prove that you sold them for their true, market value. You would also need to account for the proceeds of the sale i.e. if you sell your car for £5,000 on the run up to going bankrupt, the Official Received would expect that you pay the money over to them once they are appointed.

If you sell assets for less that they are worth (disposal at undervalue) or you simply gift them to friends and family, the Official Receiver has the power to overturn the transaction and recover the asset. In the worst case scenario, you may be accused of attempting to defraud your creditors if it is clear you have deliberately attempted to put your assets ‘out of reach’ of the creditors.

Should I make myself bankrupt?2018-01-23T16:51:06+00:00

It may be that declaring bankruptcy is the right solution to your debt problems however, you should take professional advice before proceeding with this. There are lots of other personal debt solutions available and it is vital that you have considered all these before going bankrupt.

Once we understand your financial circumstances, we will explain all the advantages, disadvantages and implications of bankruptcy before providing you with a recommendation. At that time, if you still feel bankruptcy is the best option you will understand the full process and know exactly what to expect.

Can I get credit while I am Bankrupt?2018-01-23T17:18:09+00:00

It is a criminal offence to borrow more than £500 when you are Bankrupt, without disclosing that you are bankrupt. It is extremely unlikely that you will be offered any form of credit whilst bankrupt.

I already have a CCJ is it too late to take advice?2018-02-18T19:23:32+00:00

No. Call us straight away on 0800 1804 933, in most cases we can prevent CCJ’s from being enforced by bailiffs if we are instructed early enough.

Will a Bankruptcy Order clear all my debts?2018-01-23T17:01:40+00:00

Not always. There are certain debts that will not be cleared, even when you are made bankrupt. These include, student loans, CSA arrears, maintenance payments and certain fines

What happens if I have debts in joint names and I’m made bankrupt?2018-01-23T17:07:45+00:00

The law that applies to joint debt is called ‘joint and several liability’. This means that both people named on the debt are jointly liable for the full amount; i.e. not half the balance each. If both people named on a debt are made bankrupt, the debt will be written-off.

In some cases, one of the people named jointly on the debt does not want to go bankrupt. It could be that this is the only debt they have, and they are otherwise in a strong financial position.

Following the bankruptcy order, the bankrupt person would not need to make further payments towards the joint debt. The person that is jointly liable for the debt (but not made bankrupt) must continue to honour the full financial commitment to the creditor. They will take on sole responsibility for the debt.

Who will find out about my Bankruptcy?2018-01-23T17:12:15+00:00

Once your bankruptcy order is granted, all your creditors will be notified. The Bankruptcy Order will also be advertised. Your bank and other financial institutions will be made aware of the bankruptcy order. A record of the bankruptcy will be made by the Insolvency Service on the Insolvency Register and the various credit reference agencies will update your credit file showing the bankruptcy.

Will the Bankruptcy affect my credit file?2018-01-23T17:15:14+00:00

Absolutely. The Bankruptcy will remain on your credit file for at least 6-years from the date the order was made.

Will Bankruptcy affect my partner?2018-01-23T17:25:39+00:00

Your partner will not normally be affected by your bankruptcy however, there are certain exceptions to this. The Official Receiver has authority to investigate members of your family and even your employer, if they believe this is in the interest of your creditors. They will be particularly keen to investigate the circumstances of any assets you have transferred to other people in the 5-years prior to the bankruptcy order.

For more information about our debt solutions contact us today.

CALL 0800 1804 933


“The service I received from Anderson Brookes was excellent. I’d already made the decision to cease trading but I didn’t know how to deal with my legal responsibilities as a Director. I went through the process of Creditors Voluntary Liquidation (CVL). Anderson Brookes helped me through every stage”.

Mr L C. Managing Director of #### Cash & Carry Ltd.

“I write to you having recently used your company to arrange an IVA. Throughout this process I was stressed to the point of being unwell and encountered many obstacles, all of which Khalid walked me through. I am now beginning to start the process of getting myself on the right track, and this is largely thanks to Khalid’s pragmatism.”.

Mr L. A., sole trader

“Neil helped me through the process of Liquidating my company. Although closing-down the company was quite stressful, it was surprisingly quick and Neil made sure I knew what to expect at each stage. I have recommended other business owners to Anderson Brookes and always received great feedback”.

JP, Director of XXX Ale House Limited

“Why my company ran into cash-flow difficulties, I was introduced to Neil at Anderson Brookes. We discussed lots of different options but I decided to place the company into Liquidation. The problems are now behind me and I’ve been able to set up a brand new, debt-free company”.

Miss G H - Director of #### In Exmouth Ltd

“Anderson Brookes helped me arrange a Business IVA. I was a sole trader and my plumbing business had run into financial problems. I was able to repay my debts through a voluntary arrangement over 5-years. I’m pleased to say; the business has been trading very successfully now for the last few years”.

Mr A C - trading as ‘### Plumbing & Heating’

“Just thought I would let you know that business is going extremely well I have no credit commitments, new car, new van and 2 good holidays a year and I really do owe all of that to you. I really appreciate your help in turning my life around. I would hate to think about where I would be if I hadn’t met you”.

Mr T. C. - Self-Employed Engineer

“I was introduced to Neil at Anderson Brookes as I needed help with a financial problem. It turned out that I just needed to have all the options explained. Within a month of taking advice, the problem was behind me. I’m happy to recommend Neil and Anderson Brookes to anyone that needs advice on debt”.

Miss L.H. - Informal Debt Settlement

“You were very helpful and professional.  It was a very stressful time, thanks to your work and management, I was able to relax again.”

Mrs S. T. - Sole Trader


Our professional and friendly team are on hand to provide you with the help and guidance you need at this difficult time.

CALL 0800 1804 933



Anderson Brookes Ltd is a limited company registered in England and Wales; the company registration number is 4213701. Anderson Brookes Ltd is Authorised and Regulated by the Financial Conduct Authority (FCA); our FCA registration number is 669796. You can confirm our details on the FCA website Data Protection: our ICO registration reference number is Z5595675. Anderson Brookes Ltd does not administer ‘debt relief orders’, ‘debt management plans’ or handle ‘client money’. In the event we believe a debt management plan or debt relief order may be the most suitable debt solution we will provide you with the contact details of a reputable, non-fee charging organisation. The Money Advice Service are an independent service, set up by government to help people make the most of their money, they give free, unbiased money advice to everyone across the UK – online, over the phone and face to face. You can visit Money Advice Service at

Anderson Brookes Insolvency Practitioners Ltd is a limited company registered in England and Wales; the company registration number is 10324159.  Laura J Prescott and Brendan P Hogan are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. Licence Numbers 15010 and 13030 respectively. Our VAT Registration Number is 249 5912 70. Data Protection: our ICO registration reference number is ZA201949. Anderson Brookes Financial Services Ltd is a limited company registered in England and Wales; the company registration number is 08660228.  Data Protection: our ICO registration reference number is ZA123471. All group companies are registered at 4th Floor, Churchgate House, Bolton BL1 1HL

Anderson Brookes Insolvency Practitioners Ltd operate a complaints procedure. In the first instance, please call 01204 255 051 or email to request a copy of the complaints process. If we are unable to deal with your complaint to your satisfaction, your complaint should be made to the Insolvency Complaints Gateway by visiting their website and completing and submitting their online form. Alternatively, you can print the form from their website and send it by post to The Insolvency Service, IP Complaints, 3rd Floor, 1 City Walk, Leeds, LS11 9DA or contact them by telephone on 0300 678 0015 (Monday to Friday 9am – 5pm).

Some of the services provided by Anderson Brookes are not regulated by the Financial Conduct Authority. Some of the debt solutions we provide advice on are only available in England and Wales; Anderson Brookes does not provide services outside England and Wales. Anderson Brookes is a commercial, profit seeking organisation; depending on the services provided, fees may be payable. Any fees applicable will be confirmed to you in writing before any chargeable work is completed. Anderson Brookes operates a complaints policy; if you are not happy with the way we have  dealt with you or your case, please ask us for a copy of the policy.