• Creditors are forced to accept less money than is owed.
• It is legally binding so creditors cannot change their minds.
• Once discharged (usually after 12 months), most debts are written off and creditors cannot pursue them.
• The administration, decision making and payment process of the debts is done by a third party.
• You no longer have to deal with your creditors which may have been causing you stress and worry.
• You typically pay less with a bankruptcy order than with an IVA.

The Cons

• A bankrupt cannot hold certain positions and therefore may lose their job. This includes public offices, such as MP, councillor or magistrate, and certain professions, such as solicitor and accountant. A bankrupt is also forbidden from being a trustee of a charity or a pension fund, or a company director.
• If found to be blameworthy, culpable or dishonest, you may be subject to a Bankruptcy Restrictions Order which can extend the bankruptcy up to 15 years.
• If you own a business, this may have to be sold.
• It is hard to obtain a current account. However, there are some very basic accounts offered by some banks.
• It is not a free process. Despite what many people think, bankruptcy can be expensive, with fees payable to the insolvency service, courts and any trustee are taken out of the debtor's assets.
• Not all debts can be written off. Debts excluded from bankruptcy include: child support payments, debts to secured creditors (e.g. mortgages), debts from personal injury claims, debts incurred through fraud.
• Some tenancy agreements contain a clause stating that an undischarged bankrupt cannot be a tenant so you may have to leave your rented home.
• You are unlikely to be able to obtain credit.
• You will almost certainly have to sell your home if it contains equity.
• You will lose any assets of value. However, you might not have to sell them until after the bankrupt has been discharged.
• Your name will be published in the London Gazette and the local press.

For a more in depth look at pros and cons of Bankruptcy then
Bankruptcy Pros and Cons click here ...