Can You Go Bankrupt More than Once?

Personal bankruptcy enables insolvent individuals to settle some debts by giving up valuable assets and write-off the rest.

In an ideal world, everybody who goes through this worthwhile but challenging process once would keep their finances on track for the rest of their lives. But some people find this sadly isn’t possible, with numerous factors from loss of income to spiralling living costs to blame.

Indeed, UK households have one of the world’s highest average debt levels, equivalent to £34,644 per adult, according to recent research. If you’ve previously been bankrupt and are in severe financial distress once more, you may well be wondering ‘can I go bankrupt again?’

As leading providers of UK bankruptcy advice, our licenced insolvency practitioners are often asked ‘can you go bankrupt more than once?’, as well as ‘how often can you go bankrupt?’ and ‘how many times can you go bankrupt?’ We’ll present the answers here to help anybody who’s considering a second or subsequent bankruptcy in Birmingham (where we’re based) or elsewhere to familiarise themselves with the topic of repeat bankruptcies.

For tailored advice about whether going bankrupt again or pursuing bankruptcy alternatives is your best course of action, simply contact Irwin Insolvency today and request a free, no-obligation initial consultation.

How Many Times in Your Life Can You Go Bankrupt?

Going bankrupt is an extremely serious step, not least because it can lead to people losing their homes. Nobody asks ‘can I go bankrupt again?’ unless their financial position has once more become so precarious that a drastic debt solution may be required.

If you can’t pay everything you owe, you’ll be relieved to hear you can repeat the bankruptcy process. But you need to explore less drastic options such as IVAs (debt repayment plans) and ensure that embarking on bankruptcy again is your only viable move before applying to the Insolvency Service. That’s why bankruptcy advice can be invaluable.

After we’ve addressed the question ‘can you go bankrupt more than once?’ clients often ask ‘how many times can you go bankrupt?’ Many people assume there must be a legal limit, given how far-reaching bankruptcy’s effects can be. But in fact there is no maximum number of times someone can be declared bankrupt.

Although the answer to the question ‘how many times can you go bankrupt?’ is therefore ‘as many as you require’, this doesn’t necessarily mean you should repeat the process. We advise Birmingham bankruptcy clients and others to keep in mind that bankruptcy is a last resort. Our experts can help you to assess your finances, identify behaviour that’s contributing to your difficulties, and make a sound decision about your financial future.

How Soon Can You Go Bankrupt Again?

Questions such as ‘how soon can you go bankrupt again?’ and ‘how often can you go bankrupt?’ are particularly likely to be on your mind if you were discharged from bankruptcy recently and are already under financial strain again. There are no time restrictions, so in theory an individual can reapply for bankruptcy as soon as their previous bankruptcy proceedings end. As bankruptcy lasts a year and applications are reviewed within 28 days, that person could go bankrupt again just 13 months after the Insolvency Service issued their previous bankruptcy order.

Of course, in reality it’s unlikely that someone will start to wonder ‘how often can you go bankrupt?’ around the time they’re discharged and experience two or more bankruptcies in quick succession. After all, it’s hard to obtain credit due to bankruptcy restrictions, so you’re unlikely to accrue a great deal of new debt when bankrupt. Indeed, you can’t borrow over £500 without disclosing your circumstances, which will put some lenders off. Plus, bankruptcy appears on your credit report for six years.

What if many years have passed since you last experienced bankruptcy and you’re unsure how the process works now? Our bankruptcy advice will bring you up to speed with changes to personal bankruptcy. (For instance, did you know that people have to apply for bankruptcy online now instead of at court?)

Are Second Bankruptcies More Restrictive?

Many people who ask ‘can I go bankrupt again?’, ‘how often can you go bankrupt?’, ‘how many times can you go bankrupt?’, etc. are worried that going bankrupt twice or more will mean they’ll be penalised or treated more harshly during the process, but this isn’t actually the case.

If you previously experienced bankruptcy two years ago or less, you must say so on your application form, but you won’t be treated differently. If another bankruptcy order is issued, the Insolvency Service will check whether you’ve ever gone bankrupt before and examine the case(s), but you won’t be subject to extra restrictions. The bankruptcy will proceed in the same way as your first one.

What Age Group Is Most Likely to Go Bankrupt?

Although personal bankruptcy affects adults of all ages, recent data from the Insolvency Service about insolvency in England and Wales sheds light on when people are most at risk of going bankrupt. Bankruptcy is most common among individuals aged between 35 and 54. In 2023, approximately two women and three men per 10,000 adults in this age group experienced bankruptcy.

The reason why the bankruptcy rate is highest among people aged 35-54 may be because this age group is associated with a series of significant financial responsibilities and challenges (mortgages, children’s university fees, divorce proceedings, redundancy, etc.). Certainly, many individuals who obtain bankruptcy advice from us and ask questions such as ‘can you go bankrupt more than once?’ are around midlife. So if this sounds like you, you’re not alone.

Specialist Advice about UK Repeat Bankruptcies

Having been made bankrupt previously, whether as a result of voluntarily applying for a bankruptcy order or a creditor petitioning the court, you’ll know it’s a life-changing process. That’s why specialist support from an insolvency expert is never more important than when your mind is filled with questions such as ‘can I go bankrupt again?’ and ‘how many times can you go bankrupt?’

If you’re on the verge of bankruptcy in Birmingham or elsewhere, our insolvency practitioners at Irwin Insolvency are ready to provide reliable UK bankruptcy advice tailored to your needs.

Facing bankruptcy again? Call Irwin Insolvency today on 0800 254 5122 for expert help.