British National Party (BNP) leader Nick Griffin MEP has been declared bankrupt.
A bankruptcy order was made at Welshpool County Court on Thursday.
Mr Griffin tweeted: "Being bankrupt does NOT prevent me being or standing as an MEP. It does free me from financial worries."
He added: "I am now turning the experience to the benefit of hard-up constituents by producing a booklet on dealing with debt."
A statement on the BNP website said the bankruptcy petition was presented for judgment by Mr Griffin's former solicitors.
It added that the North West MEP had applied for an IVA (Individual Voluntary Arrangement) offering to pay 42p in the pound over five years to all his creditors and said, "this was rejected by the petitioning creditor, who said they would not accept any kind of deal under any circumstances."
Mr Griffin, who was elected with 8% of the poll in 2009, will be automatically discharged from bankruptcy in one year, on January 2 2015, in accordance with the Insolvency Act.
Advice published by the Electoral Commission said bankruptcy in itself does not bar someone from being a member of the European Parliament or standing for election.
Restrictions are only triggered if an individual is made subject to a bankruptcy restrictions order or debt relief restrictions order.
The Insolvency Service said such orders had not been made in Mr Griffin's case.
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