It’s more difficult to file for bankruptcy these days, and that’s why you should check out your alternatives. Also, filing for bankruptcy will remain on record for up to ten years, so it’s advisable to avoid this.
Deal with your creditors directly
Instead of filing for bankruptcy you could try and talk to your creditors directly and discuss payment options. Your creditors know that if you file for bankruptcy they might not see all of their money back, so they’re open for suggestions.
Debt consolidation loans
If you are thinking about filing for bankruptcy you won’t be able to get a debt consolidation load easily.
This is one of the first things you should look into before thinking about bankruptcy. Your creditors will be presented with a plan of reduced payments and your monthly payment will be less that what you have been paying before.
An IVA is also called an Individual Voluntary Agreement. If your debt is over £15,000 then this option is more suitable for you than debt management.