What is a Bankruptcy?
Bankruptcy is usually the only option available to individuals who cannot afford to pay their debts. In this case, the individual will apply to the courts for a bankruptcy order, and if sucessful, the courts will appoint a Trustee who will look after your financial affairs.
You can also be made bankrupt by your creditors. In order to be declared bankrupt, you must owe at least £750. However, if you owe less than £5000, other options may be more advisable as bankruptcy is best considered if you have large debts that cannot be repaid over a reasonable period of time.
We also have a page on the different types of bankruptcy that you might want to read.