Bankruptcy is a very serious last resort for the indebted. It allows you to start afresh but you must also think about the implications it will have. You must only seek advice from a Bankruptcy expert such as an Insolvency Practitoner.

Bankruptcy in principle will leave you debt free, but subject to certain exemptions means your assets, such as your home, life insurance, pensions may be sold off to pay creditors. There are some debts such as, ‘court fines’ and ‘student loans’ that are NOT written off in bankruptcy.

Unfortunately, there is a stigma associated with bankruptcy and your situation is advertised in newspapers. Other restrictions bankruptcy brings include having bank accounts closed and credit cards. In certain professions there is a risk of losing your job and you must also inform your landlord.

All other options should be considered first. There may be a better debt solution than bankruptcy- see how an IVA can help if you or your partner owe more than £10,000 and either of you are in regular employment.