The stress and worry that comes with mounting debt only persists if you try to ignore the situation, but by doing this the consequences are much worse. You could even find yourself in a position where bankruptcy is forced on you by your creditors. By filing for bankruptcy voluntarily you remain in control of the situation, and have a bankruptcy company on your side to assist you every step of the way.

Despite the myths that surround bankruptcy, you can keep the tools of your trade, bedding, clothing, furniture, your car (if under £2500) and other household goods. Once you declare bankruptcy there is NO threat of bailiffs coming round. Once bankrupt, creditors can no longer contact you for the debt as you will no longer be responsible for it.

Going bankrupt will give you the chance to wipe off your debt and have a fresh start. Within 12 months a first-time bankrupt can be discharged, and the restrictions lifted.
If you don't own your home, and if your occupation isn't affected, then bankruptcy is an insolvency option worth your time considering.

Unless you need to protect any assets or equity, the worst thing that can come out of bankruptcy is an Income Payment Agreement or an Income Payment Order.
In the majority of cases this still works out as a better option than an IVA or Debt Management Plan.

IVAs and Debt Management Plans are not well-suited for everyone, but creditors would of course still prefer consumers entering into these to avoid bankruptcy.

Bankruptcy is a legal solution to eliminate your debt, and one that should be explored.
Here's what the UK government Insolvency Service has to say about bankruptcy:

“Before you take any action to apply for your own bankruptcy, you should get your own legal or financial advice about bankruptcy and the other options available to you. The Insolvency Service and the courts cannot advise you on specific insolvency problems; for example, whether you should go bankrupt or your company should go into liquidation, or whether you should look at alternatives. You should get independent advice. You may consult a solicitor, a qualified accountant, an authorised insolvency practitioner or a reputable financial advisor.”

Filing for your own bankruptcy in the UK can be a daunting task. Having a specialist company lead you through the process can not only greatly increase your chances of your bankruptcy being accepted, but can also dramatically lessen the risk of you obtaining an IPA with a correctly balanced income and expenditure list.

If you don't have any assets, or own your own home and your occupation isn't affected, then bankruptcy is a debt solution worth considering.

A bankruptcy specialist will require you to provide details on your income and expenditure, some history detailing how your debt problem has come to be, who your creditors are, what you owe and some other related details.
From this they will complete your bankruptcy petition, which is the document you'll be handing over to the court on the day that you go bankrupt.

Your court date won't be held in an open court; instead you are required to hand over the documentation that has been prepared on your behalf to an administration room, whereas you'll usually be asked to come back after a few hours once they've reviewed your case.
You will need to pay £495 to the court on the day that you go bankrupt to cover their administration fees.

If you are facing a financial struggle to make ends meet then bankruptcy may be a viable option.

Creditors promote the idea of a "bad stigma" being attached to bankruptcy, when in fact this is a notion that's fading fast as more people realise that bankruptcy can be the most suitable debt solution for them depending on their circumstances:

• If you have no assets.

  
  

• Live in a rented property or with family/friends.

  
  

• If your occupation is not affected.

You are able to keep the tools of your trade, and if you have a car worth £2500 or less you can keep that too. You can keep all clothing, bedding, furniture and household goods.

In most cases, first-time bankrupts can be discharged within 12 months, and in some cases as early as 7 months providing none of your creditors object.

As soon as you are discharged you can start to rebuild your credit rating again and all of the bankruptcy restrictions are lifted.