Hi Limbo Land
Don't forget - everyone has a right to declare themselves bankrupt. It's not illegal, irrespective of your financial circumstances and in alot of cases it is the best option.
Everyone who declares themselves bankrupt has a choice to make the right moral decision and struggle on regardless, thus existing as opposed to living. They also have the choice to draw a line under the situation, declare bankruptcy and move on with their lives.
Morally, our MP's were wrong to fleece the taxpayer for millions, but as MP's it was their right, under the existing rules to claim for the things they claimed for.
Morally it's wrong for bogus asylum seekers to come here and claim £7k per month from the tax payer for housing benefit, having put nothing into the pot, but legally, under current laws they have a right to do it.
Morally it might be wrong for you to declare bankruptcy, whilst you can still cover your repayments, but under current law you have a right to declare bankruptcy.
Just as the MP's and the bogus asylum seeker look after No1. you should do the same too.
There are things to consider though....
If you declare yourself bankrupt......
You will have to pay for the privilege... the cost is somewhere around £500
You will have to have an interview (face to face if you petition for your own bankruptcy) with the official receiver (OR) who will want to know what caused your bankruptcy. Just be honest with them. do not lie. They do not judge you, they merely find out the facts.
If you are still working the OR will assess whether you can contribute some of your earnings to your creditors (HSBC & Nationwide). If they decide you can this may last for 3 years.
Whilst you are bankrupt (the period from attending court to when you are discharged) you cannot come into any money without alerting the OR
The period of bankruptcy is usually 12 months unless you are granted an early discharge.
The OR will probably inform your employers and your landlord
The fact you have been bankrupt will stay on your credit file for 6 years.
Other than that, there's nothing to be scared of. Nobody who deals with your bankruptcy tries to make things difficult for you. They are sympathetic and deal with you in a respectful way.
Whilst Bankruptcy should never be taken lightly it is your right to walk into a court and declare bankruptcy any time you wish. Whether that right is one you wish to exercise is purely down to you. Society may frown upon you because you are still effectively solvent - i.e. you can cover your repayment on your debts as the repayments fall due, so why are you shirking your responsibilities, but almost everyone who goes bankrupt could have, in some way avoided bankruptcy, but life is for living not for being miserable because you made a few mistakes. The important thing is to learn from them and make sure that if you do go bankrupt, you are never put in that situation again.
Hope that helps