Bankruptcy is a formal legal process that writes off almost all unsecured debt. It is not the right answer in every situation — but it is the right answer in more situations than most people expect.
- Almost all unsecured debts are written off — credit cards, personal loans, overdrafts, HMRC liabilities, mortgage shortfalls: all gone. Notable exceptions are student loans and parking fines.
- Secured debts — your mortgage, secured loans — are not affected by bankruptcy. You keep your mortgage if you keep paying it.
- Creditors must stop chasing you. No more letters, phone calls, or legal threats.
- Restrictions apply during the un-discharged period: you cannot borrow £500 or more without disclosing your status, you cannot act as a company director, and some professional roles are affected. These end at discharge.
- There is a government bankruptcy fee of £680, payable to the Insolvency Service.
- If your total unsecured debt is £50,000 or less, a Debt Relief Order (DRO) may be a more appropriate route. DROs are free. Lightside does not administer DROs, but if the numbers suggest a DRO is right for you, we will tell you — and Citizens Advice can help you access one.
- Not all debts are written off in bankruptcy. Student loans, child maintenance, court fines, and compensation orders survive discharge — they remain payable. So does any secured debt tied to a property you keep.
Not sure if bankruptcy is for you? Most people aren’t, when they first call. That’s what the first conversation is for.
Bankruptcy has to be considered carefully.
Tap each card to see what it means in practice.
These are not the only factors. The only way to know your real position is to go through it with an expert adviser.
See which debts are included and excluded →
Lightside Bankruptcy Support Service
Preparation is everything. Get it wrong and you pay for it later — sometimes for years. Get it right and bankruptcy does exactly what it’s supposed to.
Because we guide clients through the entire process, we know exactly what the Official Receiver is likely to ask, what the Trustee will focus on, and where the pressure points are. That knowledge shapes your preparation from day one.
We negotiate. We challenge. We push back where pushing back is warranted. This matters most when it comes to demands around your home and your income — typically your two most significant assets, and the two areas where the stakes are highest.
From pre-bankruptcy structuring through to submission, the Official Receiver interview, and every enquiry that follows — we stay with you until the Trustee’s enquiries are fully exhausted. No hand-off. No disappearing act.
The preparation stage is the most important step in the process — and it’s the one most people approach without specialist support. We structure that stage carefully, avoiding the potholes that create problems at investigation. If your home, your income, or your assets are in scope, that preparation is not optional. It’s the difference between a managed outcome and an avoidable one.
When you are threatened with a bankruptcy that you don’t want
You may have more options than you think. A creditor petitioning for your bankruptcy does not mean bankruptcy is inevitable — or that the terms are out of your hands.
Not sure if bankruptcy is right for you?
You don’t need to decide. We’ll understand and analyse your situation and present the best options to you. No charge. No obligation. Completely confidential.
Bankruptcy, handled properly, produces outcomes that surprise people.
- Homes saved through negotiation with the Trustee in Bankruptcy
- Assets retained — including vehicles, tools of trade, and investment properties
- Bankruptcy timed to maximise what is written off
- No Income Payment Arrangements through careful income and expenditure preparation
- Creditor-initiated bankruptcies defended, deflected, or settled on better terms
- Bankruptcy orders challenged and annulled where wrongly made
debts written off
“Home secured, Porsche retained, all debts written off within 12 months.”
- Bankruptcy used proactively to defeat a litigious landlord claim
- Family home and high-value personal asset retained at discharge
- Discharged within the standard 12-month timeline
This case was referred by Mrs. SS’s accountant. We receive a significant proportion of our work through professional referral.
What happens when you contact us
You do not need to know whether bankruptcy is right for you before you call. Most people don’t. That’s what the first conversation is for.
You make contact
Call or message. Tell us where you are. We’ll listen without judgement and without jargon.
We map the picture
We go through your income, outgoings, assets, and debts in detail. We tell you honestly which options are open to you — including whether bankruptcy is the right one.
You choose
We give you a clear recommendation. The decision is always yours. We make sure you understand what each option means in practice before you decide.
We handle it
If bankruptcy is the route, we prepare and submit the application, coach you through the Official Receiver interview, and stay with you through to discharge — and beyond if property or income matters need resolving.
“Priti, just wanted to thank you again for all of your help a few years ago. I was quite down about it all and felt it was unfair, but you helped me and more importantly you told me you believed I would go onward and upward. You told me to not let it define me and I needed that. It was fuel. Thankfully years on I am in a completely different place and the future is incredibly bright. Thank you again.”
Painful debt situations — resolved.
What every one of these real client situations shares is that the outcome was better than the client expected when they first called.
Start Debt written off
“My nan left me some money when she died. I used it as a deposit on a flat. It felt like the right thing to do with her money. Something lasting. It didn’t last.”
Mr. and Mrs. V had been managing their debts through a creditor arrangement when a mortgage rate rise made the position unworkable almost overnight. The property was repossessed and sold for less than the outstanding mortgage, leaving a shortfall debt that followed them after the keys were handed back. Combined with existing credit card and loan balances, the total was beyond any realistic repayment plan. We recommended bankruptcy, prepared the application, managed all correspondence with the Insolvency Service, and attended the Official Receiver interview with them. Every debt — including the mortgage shortfall — was written off.
“The returns had fallen behind, and when I finally caught up with my accountant and got everything submitted, the liability that came back was more than I could afford to pay.”
Mr. JB’s accountant brought the case to us. The HMRC income tax liability was unaffordable and had no viable repayment route — bankruptcy was the right answer, not a managed arrangement that HMRC may not even have agreed to. The key practical decision was timing: Mr. JB came to us in January, and by waiting until after 5 April, the current tax year’s accumulating liability could also be caught by the bankruptcy order and written off. His specialist tools of trade — including his wood chipper vehicle — were protected throughout as assets essential to his livelihood. Mr. JB was discharged in the usual way. The debt is gone; his tools are intact; his accountant has a tax management system in place going forward.
Saved 3 mths - Discharged
“I hadn’t filed my tax returns for several years. When I finally did, the bill was around £44,000 — and HMRC wanted £5,000 a month to clear it. What made it far worse was that two properties appeared to be in my name. They weren’t mine — they belonged to my teenage step-daughters.”
We established that both properties were beneficially owned by Mr. CR’s step-daughters — not by Mr. CR — and built the evidence case: source of deposits, documented intention at the time of purchase, and the written trust arrangement in favour of the step-daughters. We presented that case to the bankruptcy trustee with sufficient clarity that the trustee accepted the position without dispute. Both properties were excluded from the bankruptcy estate entirely. Mr. CR was discharged from bankruptcy within three months — nine months ahead of the standard twelve-month term.
When your client’s bankruptcy situation is outside your specialism
Accountants, solicitors, insolvency practitioners, and IFAs refer clients to Lightside when a bankruptcy petition, statutory demand, or insolvency process has created a problem that requires specialist debt advice. The referral is usually triggered by one of a handful of recognisable situations, and if any of these are familiar, an initial discussion costs nothing and is completely confidential.
We take over the debt and insolvency matter entirely. Your client’s relationship with you remains intact. We keep you informed at whatever level of detail is useful, and we work to a conclusion — not just an initial assessment.
Lightside is FCA-authorised. Most of the bankruptcy cases on this page reached us through professional referral or personal recommendation.
Talk to us about your client
Initial referral discussions are completely confidential. You do not need your client’s permission to make a speculative enquiry. Anonymised details are fine at this stage.
Cases referred by professionals
kept Assets saved
“I was so scared at the thought of bankruptcy. The thought of losing my home was terrifying. I wasn’t eating. I wasn’t sleeping.”
Mrs. SS’s home was never at risk — but she didn’t know that. A thorough review of the equity ownership structure confirmed the Trustee in Bankruptcy had no viable claim on the property. We managed all correspondence throughout, so she never had to deal with the insolvency service or creditors directly. When the Trustee attempted to claim the family Porsche, we challenged it. The claim was dropped. Mrs. SS was discharged within 12 months with her home, her marriage, and her financial footing intact.
“The returns had fallen behind, and when I finally caught up with my accountant and got everything submitted, the liability that came back was more than I could afford to pay.”
Mr. JB’s accountant brought the case to us. The HMRC income tax liability was unaffordable and had no viable repayment route — bankruptcy was the right answer, not a managed arrangement that HMRC may not even have agreed to. The key practical decision was timing: Mr. JB came to us in January, and by waiting until after 5 April, the current tax year’s accumulating liability could also be caught by the bankruptcy order and written off. His specialist tools of trade — including his wood chipper vehicle — were protected throughout as assets essential to his livelihood. Mr. JB was discharged in the usual way. The debt is gone; his tools are intact; his accountant has a tax management system in place going forward.
Saved 3 mths - Discharged
“I hadn’t filed my tax returns for several years. When I finally did, the bill was around £44,000 — and HMRC wanted £5,000 a month to clear it. What made it far worse was that two properties appeared to be in my name. They weren’t mine — they belonged to my teenage step-daughters.”
We established that both properties were beneficially owned by Mr. CR’s step-daughters — not by Mr. CR — and built the evidence case: source of deposits, documented intention at the time of purchase, and the written trust arrangement in favour of the step-daughters. We presented that case to the bankruptcy trustee with sufficient clarity that the trustee accepted the position without dispute. Both properties were excluded from the bankruptcy estate entirely. Mr. CR was discharged from bankruptcy within three months — nine months ahead of the standard twelve-month term.
Annulled £60k v £194k
“I knew exactly what a bankruptcy petition was. When I walked into that meeting on the Friday afternoon, I already understood what I was looking at. The hearing was four days away. HMRC were claiming £60,000.”
Lightside secured an emergency adjournment of the bankruptcy petition hearing at four days’ notice and paid £10,000 at court on the day. When the bankruptcy order was subsequently made — after Mr. G allowed the eight-week window to pass — Lightside took the case on in full and applied for annulment on the grounds the order should never have been made. That specific legal basis mattered: it would, if the application succeeded, remove the bankruptcy from all records entirely, preserving Mr. G’s FCA authorisation. HMRC contested the application and raised their demand from the original £60,000 to £194,000. Lightside challenged the revised figure successfully: the annulment was granted on the basis of the original £60,000 petition debt. The bankruptcy was annulled, the record was cleared, and his FCA registration was preserved.
Kept LPA Receiver used
“I had no money apart from the income from my rental property in Manchester, which didn’t even cover my rent and living costs. A builder threatened to make me bankrupt. I was terrified I would lose my rental property — my source of income and my children’s inheritance.”
Ms. R came to us with credit card debt from a failed property development business, a marriage that had broken down, and a builder threatening bankruptcy over a disputed claim. We first stabilised her finances through a creditor arrangement, freezing interest across all accounts. When the builder proceeded with his petition, we advised her to let him bear the cost — because bankruptcy would write off the credit card debt and the builder’s claim simultaneously. Her condition was clear: her children’s inheritance — a BTL property in Manchester — had to be saved. We advised her parents, who held a second charge on the property, to appoint an LPA Receiver before the first charge holder could act. The LPA Receiver collected the rental income and used it to service the mortgage throughout the bankruptcy period, giving the Official Receiver no viable route to the asset. Ms. R was discharged debt-free, with the property still hers and her children’s inheritance intact.
Start Debt written off
“My nan left me some money when she died. I used it as a deposit on a flat. It felt like the right thing to do with her money. Something lasting. It didn’t last.”
Mr. and Mrs. V had been managing their debts through a creditor arrangement when a mortgage rate rise made the position unworkable almost overnight. The property was repossessed and sold for less than the outstanding mortgage, leaving a shortfall debt that followed them after the keys were handed back. Combined with existing credit card and loan balances, the total was beyond any realistic repayment plan. We recommended bankruptcy, prepared the application, managed all correspondence with the Insolvency Service, and attended the Official Receiver interview with them. Every debt — including the mortgage shortfall — was written off.