What is bankruptcy?

Bankruptcy is a legal proceeding to relieve debt for individuals or companies who can not pay their debt. Anyone can go bankrupt, including individual members of a partnership, although bankruptcy should always be a last resort option as it stays on your credit report in a negative manner for many years afterwards.
There are many websites, online resources, companies and government departments that can explain all aspects of the bankruptcy process to you. However for quick reference, a few key points have been outlined below. It is important however to speak to an expert before considering bankruptcy for yourself.

Bankruptcy doesn't work on all types of debts
Bankruptcy can eliminate many kinds of debts, such as credit card debt, unsecured loans, and medical bills. But there are many types of debts that cannot be eliminated with bankruptcy; these include such debts as child or spousal support obligations.
How do I file for Bankruptcy?

If you want to make yourself bankrupt, you should contact a county court or a specialist company that can aid you in the bankruptcy process.
Who will deal with my case?

If you do not do it through a specialist bankruptcy company, an official receiver is appointed by the secretary of state and is an officer of the court. The official receiver has responsibility for administering your bankruptcy and protecting your assets from the date of the bankruptcy order.
How will bankruptcy affect me?

When you file for bankruptcy, you must propose a repayment plan that details how you are going to pay back your debts over the coming years. The minimum amount you'll have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you'd filed bankruptcy.

Daniel Johnstone is a debt advisor who is currently researching the different typesbankcruptcy that are available.