What happens when you go bankrupt?

It’s affected 50 Cent, Fazer from N-Dubz, Kerry Katona and pretty much all of the band Blue – among a lot of other celebrities.

But when we talk about bankruptcy, how many of us actually understand what it means?

Katie Price is the latest celeb to be declared bankrupt after failing to stick to a plan to repay her debts.

And after reading this, you’ll know exactly what that means.

Bankruptcy might be seen as a dirty word but it’s a pretty simple concept – it’s when nearly all of your debts are written off because you can’t afford to pay them at the time that they’re owed.

It’s an order from the court that in the UK usually…