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Don't know UK rules but I went through a bankruptcy in the US and I can relate my experience. My debt with minimum payments had reached a point that my nut each month was more than I brought in. I tried credit counseling and the best they could do would have had me debt free in a little over five years but the payment schedule left me with no money to spare. No money for car repairs, no money for life's emergencies, no clothing allowance, no money for dental bills, nothing. Heck even a larger than expected utility bill would have put me over. On top of that I'd still have a bad credit rating for many years to come. I checked into bankruptcy and in my situation it was just the better choice. Yes, your credit will be screwed for sometime but it already is anyway and the longer you carry heavy debt the worse it will get. You won't be able to get credit for a while but without the crushing debt you can probably just live decently on your salary anyway which is always better than the credit card lifestyle. Within six months of declaring bankruptcy I had offers of credit to buy a car. I wouldn't do it, the rates are astronomical and I don't need a new car but it shows bankruptcy isn't the end of the world. My only regret is not doing it sooner and gotten on with my life. The important thing, at least for me, was to learn from the experience and not let myself fall into the debt trap again. From what little info I have about your situation, it sounds like you might well be a good candidate. I'd at least look into it.
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