Bankruptcy can make you debt free in 12 months

Are you struggling to pay off your debts? Are you feeling overwhelmed and hopeless? You’re not alone. Millions of people are in the same boat. But there is hope. You can get out of debt, but it’s going to take some work. Read on for information on how to get started.

What is bankruptcy?

Bankruptcy can be a path to clearing debts, it is a legal way to declare your inability to pay your creditors. If you have debts you cannot repay this could be a viable solution for you. Within bankruptcy you will stop paying your creditors and creditors can no longer chase you for outstanding payments. For people going into bankruptcy it can provide a fresh start for debt that could not be repaid.

Bankruptcy can be done voluntarily or can be actioned by the creditors you owe money to.


What do your creditors have to abide by?


Pros and Cons of Bankruptcy




More Information About Bankruptcy

Before considering bankruptcy to clear your unsecured, unpayable debt we should look at all other options, bankruptcy may or may not be the right move for you. By using insolvency advice you will be able to come to the best solution for you. You can begin this process by using our free solution finder.


A solution for people with over £6000 worth of debt, you must also owe more than one creditor. An IVA is a legally binding agreement which can help write off up to 81% of debts over a 50 – 60 months period.

Debt Management Plan

A Debt Management Plan or DMP, is an informal agreement between you and your creditors to pay back lower priority debts, this will reduce your monthly outgoings to an affordable figure each month.


Bankruptcy is a formal solution designed for those who physically cannot repay debts. Bankruptcy is often viewed as the last resort but can be a good solution for those who cannot make any repayments.

Don't know where to start?

No need to worry – we’re here to help you figure it all out.
The Money Advice Service is a free and impartial organisation, created by the Government, with the goal of providing debt counselling, debt adjusting and credit information services to those in need. Individuals can get professional free advice on how to manage their financial burdens by visiting