text: bankruptcy what is it? i live in the uk and got myself in a mess with money im around £10000 in debt, and had no problem paying the repayments untill i had a medical condishion which is stopping me to work, iv thought of alot of things to repay including my own home business , but bankruptcy has crossed my mind , but what is it what are the benifits and what are the downfalls, my parents say it will effect me for life , will it? bankruptcy is a legal filing where you declare you are unable to pay your creditors. there are different types of bankruptcy and if you go this route you need to do some serious homework and be damned careful. a bankruptcy can stay on your record from 7-11 years depending on what you file. there are a ton of websites, books and lawyers who can assist you. i'd also ask free legal clinics. one other better route for you is  consolidation where you can end up paying half or less of what you owe without screwing up your credit. please do your homework first and think before you do anything!!  vin