Bankruptcy should only ever be used by insolvent debtors who can not find another debt solution. Debts Management would always recommend that you explore all other routes first, such as a Debt Management Plan or IVA.

Am I Insolvent? Should I Consider Bankruptcy?

It is important to understand what insolvency means, and the definition of insolvency is:

(a) Not solvent; not having sufficient estate to pay one’s debts; unable to pay one’s debts as they fall due, in the ordinary course of trade and business; as, in insolvent debtor.
(b) Not sufficient to pay all the debts of the owner; as, an insolvent estate.
(c) Relating to persons unable to pay their debts.

So if you are “unable to pay one’s debts as they fall due” then it is important that you seek expert debt help.

Although Bankruptcy is an option for insolvent debtors, it is a very extreme solution and should only be used after all other debt solutions have been fully explored. You should be aware than bankruptcy is a public process where the debtor loses control over their finances, and assets can be sold to repay debts.

Bankruptcy is for unsecured debts only. The decision to apply for bankruptcy is serious and should only be considered as a last resort and then only if you are unable to obtain an IVA or an alternative debts solution.