Bankruptcy is a type of debt solution suited to people with debts they can’t pay back in a reasonable time. If you decide to go bankrupt, assets you own such as your car or house will usually 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.
Applying for bankruptcy is referred to as ‘petitioning for bankruptcy’. To enter into bankruptcy voluntarily, you submit bankruptcy forms online and pay a fee.