Pros

• Debts are written off, with certain exceptions explained opposite.
• Creditors can’t take further action unless the debts are secured on your home or other property.
• It allows you to make a fresh start after only a year.
• You may be able to avoid having to sell your home if your spouse, partner or a relative can buy your share of its value after any debts secured on it have been paid.

Cons

• Your bankruptcy is entered on a public register and is advertised.
• If you apply to the court for your own bankruptcy, you will have to pay a court fee and deposit totalling £510.
• You will remain liable to pay certain debts – in particular student loans, fines and some debts arising from family proceedings.
• Any business you have will almost certainly be closed down.
• Your employment may be affected.
• Certain professionals are barred from practising if they are made bankrupt.
• You can’t act as a director of a company or be involved in its management unless the court agrees.
• You will be committing an offence if you get credit of £500 or more without disclosing that you are bankrupt.
• You may have a bankruptcy restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.

* An order that will place restrictions similar to those in force while a person is bankrupt, which the official receiver may apply for.

Source: In Debt? Dealing with your creditors – The Insolvency Service