Hi --- Really you need to speak to a professional experienced licensed debt counsellor before you make that very important decision, I initially suggest speaking free of any charges to the UK Insolvency helpline who can provide you with impartial advice in sorting out this important life changing matter.

http://www.insolvencyhelpline.co.uk/individual_voluntary_arrangements/index.php

Due to some pretty awful cirmcumstances over the past few years, I find myself at 62 years of age with unsecured debts of just under £40,000. My income has all but dried up and I am lucky to make £800 per month. I do not have any assets other than a car which I need for work. I have talked at length about my current circumstances with my creditors (credit cards & bank loan) who have been chasing me unremittingly for money I just don't have. Despite the fact that I'm virtually on the breadline, I am making very small token payments to each of my creditors monthly, which seems to be holding them in abeyance whilst I try to decide wether I should go bankrupt, take the IVA route or try again to re-negotiate the smallest possible payments to be reviewed every 3-6 months. Each creditor (5 in total) has offered me a minimum repayment of approx £45 each, but that means paying £250 a month, which is just impossible to meet at the moment. I believe my options are IVA or bankruptcy and would very much appreciate any help in advising which route would be best in my circumstances.