Bankruptcy Vs IVA

Bankruptcy: Is one way out of paying debts you can no longer pay. It allows you to effectively write off your debts.

Your assets(house/car), can be taken to use for paying off your creditors.
Courts can sometimes require you repay towards your debts.
Bankruptcy is not the only way of dealing with debt/insolvency, nor is it always the best way. Often the debtor and creditors lose out in a big way.

What happens when you declare yourself bankrupt?

The London Gazette will have you in their bankruptcy section, as well as your local paper.
Your employment could be affected - it is not unusual for contracts of employment written up by an employer to contain clauses relating to bankruptcy.
Loans, Credit Cards, and even a Mortgage could be very difficult to obtain.
During Bankruptcy, you are not allowed to be a company director, and depending on your individual circumstances, you may be required to pay monthly payment for three years.
You will not be able to operate a bank account, making it difficult to receive paid employement/Wages and/or benefits.
Your bankruptcy could be increased from 5 to 15 years if you have been declared bankrupt before the term of your bankruptcy.

As mentioned above, going bankrupt is not the only option, there are alternatives and other debt management options which may suit your personal situation. If you are looking for ways to sort out your debt problems, an IVA could potentially be a better solution.