Answer:  You haven't really provided enough information on your situation to advise you as to what your options may be.

How much debt do you have?  Is the debt in just your name?  Do you own any property?  These are just a few of the questions that would need to be addressed.

This may help as well:

Should I Do Debt Management or Just Go Bankrupt?

In deciding to ether go bankrupt or do a debt management plan or an IVA there are a few questions that you need to ask yourself:

One is what is it you want to accomplish?

Of course the answer may very well be, get out of debt, stop the collectors form ringing me day and night, stop the stress of it all, but do you feel a need or obligation to repay the debts you owe?

You also need to ask yourself, or more importantly, review your circumstances.

Do you own any property with equity?  Are the debts in just your name?  Are you working, earning a wage, and if so, do you have any surplus money after your basic living expenses to offer towards servicing the debts?

If the accounts are in yours and someone else’s name, then it may need to be a joint decision as to what to do, as the debts are jointly held.  This is not always the case as there could be a divorce or partners splitting up and one can no longer service the debts.  But what one person does with joint debts, will impact/affect the other person as well.

If you own property, especially if the property has equity in it, will have a big impact on deciding to go bankrupt or not.  In bankruptcy there is a possibility of losing the property as it could be viewed as an asset and the Trustee may want it sold to pay into the bankruptcy.

Also, if you are working and have some surplus income after paying your basic living expenditures, you could look at either an IVA or a debt management plan.  You could still go bankrupt, but if you have a surplus of income that exceeds £20, you could be required to pay that surplus into the bankruptcy for a period of three (3) years.

If you have no property or assets, and no surplus of income and/or are not working, then bankruptcy may be the strongest option for you.  It certainly is the quickest way out of debt, but also can be the most damaging, again depending on your full situation.

So to answer the above question as to should someone go bankrupt or do debt management, you can see that a few questions need to be addressed first and it is always best to speak to a professional debt adviser or someone who can go over and discuss your options and circumstances with so you can make an informed decision.

I hope this has answered your question.

For more information and assistance, please complete our eligibility form at our web site www.bankruptcy.org.uk or ring us at 0800 690 6855.

Regards,

Jon