After carefully considering the advantages and disadvantages of bankruptcy and after taking the best available advice, it may be that, for some people, bankruptcy is the most desirable solution. Such people may include:

Where a debtor would not benefit from bankruptcy, it may be possible to come to an arrangement with the creditors to pay all, or part, of the debts by instalments over a particular period. However, unless a formal agreement is made a creditor could still bankrupt the debtor and, should the debtor subsequently become bankrupt, any money paid to a creditor may be recovered later by the trustee as a preferential payment, see alternatives to bankruptcy.

Because of the far reaching effects of bankruptcy, always get legal advice regarding your options. A financial counsellor can also help you negotiate with creditors, and suggest options for dealing with unmanageable debt.