Anyone can apply for bankruptcy but there are both disadvantages and advantages in doing so as outlined below:

Advantages

• Your existing company debts are completely written off, leaving you free of debt within 12 months. (However – there is a chance that you could end up making payments for approx 3 years through a binding ‘Income Payments Order’ if issued by court order)
• If you are residing in rented accommodation and your rental payments are up to date; You will still be able to reside there and continue with your rental payments.
• Creditors will have to accept that they will be only able to claim less money than is owed to them; A court will alleviate any demanding creditors’ phone calls and letters to you as all correspondence will be dealt with by a third party.

　Disadvantages

• Complete loss of control of assets.
• Inability to apply for credit in excess of £250 without the lenders consent.
• You may be publicly examined in court.
• Additionally you will not be permitted to be involved, take part or act in the follow:
• Act as a company director.
• Take part in the promotion, or management of a limited company (LTD)
• Cannot trade in any business under another name unless you inform all parties concerned of the bankruptcy.
• May not practice as a Charted Accountant / Lawyer.
• May not act as a Justice of the peace.
• May not become an member of parliament.
• May not become a member of a local authority.

If you are contemplating on filing for bankruptcy – you can start the process by filling out the necessary forms at:  http://www.insolvency.gov.uk