Bankruptcy Cost Calculator
Bankruptcy Outcome
Application Fee-
Surplus Income-
Income Payment Order (3yr)-
Assets at Risk-
Debt Written Off-
Discharge Period-
Bankruptcy Costs Breakdown 2025/26
| Cost | Amount | Notes |
|---|---|---|
| Application Fee | £680 | Non-refundable, paid online |
| Income Payments | Varies | Surplus income for 3 years |
| Asset Realisation | Varies | Non-essential assets sold |
| Legal Advice | £200–£500 | Optional but recommended |
Key Facts
Application Fee
£680
Discharge
12 months
IPO Duration
3 Years
Credit Impact
6 Years
DRO Limit
£30,000
DRO Fee
£90
How to Use This Calculator
1
Enter your total debts
Include all debts: credit cards, loans, council tax arrears, HMRC debts.
2
Enter your total assets
Include savings, vehicles, investments. Exclude basic household items and tools of trade up to £1,000.
3
Enter income and expenses
Your surplus income determines whether an Income Payment Order will be made.
4
Select homeowner status
If you own property, your share of equity may be claimed by the Official Receiver.
5
Review the outcome
See total costs, potential income payments and how much debt would be written off.
Frequently Asked Questions
How much does bankruptcy cost?
The application fee is £680 (2025/26), paid online to the Insolvency Service. This is the only mandatory upfront cost. If you have surplus income, you may also face an Income Payment Order for 3 years.
How long does bankruptcy last?
You are typically discharged from bankruptcy after 12 months. However, Income Payment Orders or Agreements last for 3 years, and bankruptcy remains on your credit file for 6 years.
What happens to my home?
If you own property with equity, the Official Receiver or trustee can claim your beneficial interest. They have up to 3 years to deal with the property. If your equity is less than £1,000, they may not pursue it.
Can I keep my car?
You can usually keep a car worth up to £1,000 if you need it for work or essential transport. Higher-value vehicles may be sold and replaced with a cheaper alternative.
What debts survive bankruptcy?
Most unsecured debts are written off. However, student loans, court fines, child maintenance, debts obtained by fraud, and some HMRC debts may survive bankruptcy.
Is a DRO better than bankruptcy?
A Debt Relief Order (DRO) costs only £90 and is available if your debts are under £30,000, you have less than £2,000 in assets and surplus income under £75/month. If you qualify, a DRO is usually preferable.
Official Sources & References
Data verified against official UK government sources. Last checked April 2026.