Bankruptcy is not considered good or bad; it is a way for honest people and companies to
protect themselves when they find they cannot repay their debts. When you file for bankruptcy, instead of seeking debt restructuring services, you do so via a legal process. While you become free of your debts, there are other consequences to consider:
The court will declare that you are incapable of repaying your debts. The Official Receiver then becomes the provisional trustee of all your assets and can decide how your property and other assets are distributed among your creditors.
You will be deemed bankrupt for four years (five years if you have been bankrupt before).
You cannot make significant investments like buying a car or a house.
You cannot apply for other loans.
You might lose your provident fund to creditors to whom you owe money.
Your bankruptcy status is noted on your public records.
You won’t be able to serve as a company director or operate any business while bankrupt.