WHO SHOULD CONSIDER BANKRUPTCY?

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:

pensioners or beneficiaries who do not own a home, whose household goods are on credit (but not subject to a consumer mortgage or under a bill of sale), who are unlikely to be earning other substantial income in the near future and who are being harassed by creditors
deserted spouses or widows who have debts of their own and who are otherwise in the same position as pensioners or beneficiaries. However, if the debts are the responsibility of the other spouse (whether living or dead), bankruptcy may not be necessary
low wage earners, especially if they have a large family, pressing debt problems and heavy, additional expenses, such as a sick or handicapped child.

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.

It is a good idea to get financial advice or counselling as well as legal advice before deciding to go bankrupt.