Bankruptcy works different in different parts of the UK, if you live in Scotland the process is knows as sequestrian. Bankruptcy can give you a fresh start and will write off your debts however the decision should not be taken lightly as it can affect other areas of your life such as your employment or living arrangements. Bankruptcy usually lasts for 12 months and there are usually no payments required, however you may be required to make payments into your bankruptcy for up to 3 years under an Income Payments Order if you have any disposable income once your bills and essential living costs are covered.  You could be asked to sell valuable assets such as your home or car, but you’ll be able to keep the things you need for day-to-day living.