How are my debts paid?

Your debts are not usually paid in full when you are bankrupt. Your trustee[?] can pay some of your debts using any available proceeds from the following:

  • sale of your assets
  • compulsory payments[?] (if you earn over a set amount).

Do I still have to pay my debts?

It depends on the type of debt. Most unsecured debts[?] such as credit cards and utility bills are covered in bankruptcy. This means you won't need to continue payments.

If you have a secured debt[?] and want to keep that item, for example a car under finance, you will still have to pay that debt. If you are unable to pay your secured debts, you must surrender the secured items back to the creditor.

Case study: Ben

Secured car debts in bankruptcy

Ben is a delivery driver who needs his van for work, but it is secured to the bank.

Find out more about Ben's story 

Can I still pay some of the debts?

You can make voluntary payments towards your debts during and after bankruptcy. Creditors can’t pursue you for the debt that bankruptcy covers. Some creditors though, may not provide services to you while the debt exists. 

For example: John has an electricity debt, and listed it on his bankruptcy. The electricity provider told John that he can't use them as a provider while he owes the debt. John decides to pay some of this debt to be able to continue using the electricity provider.