Bankruptcy writes off all your unsecured debts so that you can make a fresh start.
Bankruptcy is generally more suitable for people whose financial situation is unlikely to improve in the foreseeable future.
It is a form of insolvency. To qualify for bankruptcy, your unsecured debts need to outweigh your assets, such as property and vehicles. If your assets are worth more than you owe through unsecured debts, you will not be able to go bankrupt.
Going bankrupt can affect your job, your home and your credit rating, which is why it is important to get impartial advice about bankruptcy.