Bankruptcy is a way of dealing with debts if you have no means of repaying them and alternatives with your creditors have failed. Bankruptcy makes you free from debts within 12 months (in most cases) and ensures your assets (if any) are shared evenly amongst your creditors.
Bankruptcy should only be considered when an individual cannot pay their debts as a matter of last resort. If you have no or little disposable income, then bankruptcy may simply be your only option. Being made bankrupt for the first time generally means you will receive your discharge one year after the date of the bankruptcy order. You may still be subject to an Income Payments order if you have a sufficient amount of disposable income available.
It is always important you seek professional advice before declaring yourself bankrupt. It may seem very appealing to think you can be debt free in 12 months, especially if you have a high level of debt but there are some drawbacks to bankruptcy which you need to be fully aware of, including the possibility of losing your home if you own it, amongst other things.