Could you avoid declaring bankruptcy?
Financial problems can cause considerable anxiety, especially when it seems that debt solutions are few and far between. In the UK, thousands of people every year petition to be declared bankrupt in an effort to escape debt, but bankruptcy ought to be regarded as the last resort in all cases.
Being declared bankrupt can have serious consequences. A bankrupt is unable to act as a director of a company for the period of the order, his assets will be seized and sold to pay off creditors and his credit rating will be negatively affected for at least six years (often longer if a BRO has been imposed).
Avoiding bankruptcy is usually the best option for debtors, many of whom might be able to agree debt management plans with their creditors. Individual Voluntary Arrangements (IVAs), debt relief orders, trust deeds and debt consolidation should also be considered before a request is made to be declared bankrupt.