If you've been shouldering the burden of insurmountable debt for a long period of time, then a personal bankruptcy can actually be of tremendous relief. After all, you no longer have to worry about dealing with all your creditors every month and worry about bills that are going unpaid. You can look forward to a fresh start and building a new life based on sound financial decisions.

Unfortunately though, personal bankruptcy in the UK isn't a complete stroll in the park. The restrictions it will put on you can last for a significant amount of time after you're discharged from your bankrupt status. This means that applying for credit will become an almost impossible task. However, if you've previously struggled to make repayments, you'll probably want to stay clear of borrowing money anyway.

If you have a family, then you're going to want to do everything you possibly can to keep a roof over their heads. This is why an IVA is such a popular alternative to a personal bankruptcy UK, as you can usually keep hold of your major assets. Unfortunately, with an IVA you do have to make repayments on a small amount of your debt. So if you've got no money coming in at all, an IVA isn't really an option.

People with less ties and serious debt should consider personal bankruptcy over an IVA, as it can actually get you out of the red much quicker.

Resource: Thomas Baugh offers more advice on personal bankruptcy at the Debt Help Site.