Bankruptcy
It is our opinion that this should be the last resort to dealing with debt. Bankruptcy can be short-term relief, but long-term misery. If you have debts of less than £20,000 you will likely be made bankrupt for 2 years, or 3 years if you owe more than £20,000, although bankruptcies can now be discharged after shorter periods. This would be decided by your trustee in bankruptcy (Insolvency Practitioner) who will supervise your debts.
Details of bankruptcies are published in newspapers, your employer will be informed as the trustee will need confirmation of your income, and if you own your own home this will be at risk, as you will probably be asked to sell this to help pay off your debts. You will be unable to have a bank account or any credit for a minimum of 6 years and after that you will likely be charged higher interest rates due to your bankruptcy. Bankruptcy should only ever be considered as a final option for people who are retired, unemployed or unlikely to ever own their own home.