The Personal Insolvency Act 2012 introduced a new system for dealing with personal insolvency.
People on very low incomes who cannot pay their debts may apply for a Debt Relief Notice.
People who cannot pay their unsecured debts can apply for a Debt Settlement Arrangement.
People with secured debts who cannot pay their debts can apply for a Personal Insolvency Arrangement.
If you cannot repay your debts and the personal insolvency alternatives are not suitable, bankruptcy may be a way to settle your debts.