How does bankruptcy work?
Bankruptcy is a form of insolvency, and normally only suitable if you can’t pay back your debts in a reasonable time. Any assets you own, such as your house, will normally be sold to pay off your debts. This means if your assets are worth more than your debts, or if all of your regular payments are up to date and you can afford to keep paying them, bankruptcy is unlikely to be the best option for you.
When you make yourself bankrupt almost all of your unsecured debts are written off, allowing you to make a fresh start. But personal bankruptcy rules mean you will face certain restrictions.