UK consumers were yesterday informed of the "serious" implications of bankruptcy by the credit agency Experian.
Jill Stevens, director of consumer affairs at the company, warned that becoming bankrupt "is not an easy way out of debt".
She added that finding yourself insolvent would "probably mean you have to give up any valuable possessions you own".
Experian has launched a new credit report basics guide called Your Credit Report and Bankruptcy, offering advice for those who have found themselves in financial difficulty and are looking for alternatives to bankruptcy.
It explains the impact that bankruptcy can have on an individual and provides financial information to those with money problems.
Ms Stevens said: "[Bankruptcy] may be the best option for some people, but it should only ever be considered as a last resort and after receiving professional advice.
"It is rarely a positive solution to money problems," she added.
A recent report from the Insolvency Service showed that there were a total of 15,389 bankruptcies in England and Wales during the first four months of 2006.
More people in the UK are taking out individual voluntary arrangements, which allow debtors to make a deal with their creditors, instead of going into bankruptcy.
BBC Radio 4's Money Box programme states that a total of 28,000 people a year in the UK are now choosing this option.
