The global economy has been in the doldrums for some time, so it’s quite likely that people you know or perhaps even yourself may be dealing with debt collectors this year. There is nothing to be ashamed of, as once in a while many of us get into financial difficulty and may fall behind on personal loans, student loans, credit card bills and even medical and legal bills.

During an economic downtime, many people may feel the pressure to file for bankruptcy because of the unrelenting stress of trying to pay off an ever expanding debt. However, bankruptcy is an expensive process. The court fee for bankruptcy is currently £150, administration costs are £345 and, if you go to a High Court a £7 fee is levied for the swearing of the statement of affairs.

When you are backed into a corner with insurmountable debts, filing for bankruptcy might seem like the most logical and practical solution for you. Yet bankruptcy may not always be in your best interest. There are a number of viable alternatives that you may wish to explore before finally committing to bankruptcy. It should be your very last resort.