Bankruptcy can be an option for you if you have personal debts that you cannot pay by their due date. Bankruptcy ensures your assets are shared out fairly among your creditors - the people you owe money to. However, it does not guarantee that they will get paid.
Anyone with personal debts can become bankrupt. This includes individuals with personal debt, sole traders, and individual members of a partnership. If you owe someone £5,000 or more, they can apply to make you bankrupt - a creditor's petition. You can also apply for your own bankruptcy. This is called a debtor's petition.