Bankruptcy is often the last resort and applies where no meaningful proposals can be offered to creditors; that is: ❍ you have no valuable assets; ❍ your income is low; or ❍ not enough creditors will accept any other

proposals you have put forward. In particular, a major creditor who is owed more than 25% of your debt may simply refuse your proposals for an IVA as a matter of principle, leaving you with no option but to go bankrupt.