Plan for Progress  

You may have enough equity in your total assets to pay off your current debt. If that is the case then that will be your best option. If you can pay off a large portion of that debt then you should do that as well. You may be able to contact your creditors to ask for some time to liquidate your assets.

Bankruptcy can be imposed for very small amounts of money. You don’t need to owe thousands of dollars or pounds to have a creditor file against you. It can be as little as a couple hundred.

If you have no other options that you might have to look into voluntary bankruptcy. If this happens you finances will be under scrutiny and many people could find out about it. It might be your only option though.

In order to clear the debts that you have, your living expenses will be taken into account and then the rest of your assets will be sold off. In this instance the court will take over and impose the bankruptcy on you. Their role is to this in a fair way for you and your creditors.

When this has taken place your creditors will not be able to make any claims against you. Your credit rating may look bad for some time so this is another disadvantage of a bankruptcy. The main disadvantage being that you could lose major assets like your car or home.