From 6 April 2016 people seeking to make themselves bankrupt will no longer need to apply to the court. Instead they will complete an online application on gov.uk, which will be submitted to an adjudicator employed by the Insolvency Service.

Online applications will be less expensive and, for the first time, will be able to be paid for in instalments.

Sarah Albon, Insolvency Service chief executive said: ‘Online bankruptcy applications will be easier for people to complete and will remove the perceived stigma of going to court, which we know stops some people from applying.’

The current application fee for a personal bankruptcy application to court (known as a ‘debtor petition’) is £180. Online applications to the adjudicator will cost £130 and can be ‘saved up for’ by paying in instalments online using a debit card.

People and businesses owed money who are seeking to have someone declared bankrupt will continue to apply to a Court Registrar as they do now.

The Insolvency Service says the online bankruptcy application process has been developed using research with people experiencing problem personal debt, former bankrupts, debt advice charities and other organisations to ensure it is simple and easy to use. An assisted digital option will be available for those who are unable to complete the online application themselves.

The introduction of online bankruptcy applications is accompanied by the launch of a new interactive smart answer tool to help people with problem personal debt to choose which debt solution is right for them.

The Insolvency Service interactive personal debt tool is here