Bankruptcy is not going to be your least expensive option for solving your debt needs.  There are several fees you will need to make on top of the cost of the debts you may have.  Let's take a look at the fees first before launching into what you could lose to cover the debts you have.

The first fee you will pay is for the court.  The court fee is £120 in most areas.  The fee may be waived by the court if the circumstances are correct, but this is rare.  You may also qualify for a reduction of the fee or exempt depending on your situation.  The court staff will be the only personnel who can advise you about the fee.  You should always be prepared for the cost no matter your circumstances.

Next you will have to make a deposit.  The deposit is payable in all cases and goes towards the administration costs that your case will bring.  This is a fee you can't be exempt from.

The last fee is the statement of affairs fee in which you swear to the court.  It is actually an affidavit and part of your bankruptcy paperwork.  If you are going through bankruptcy in the County Court you will have no charge.  Before a High Court or if your solicitor is not present the fee will be £7.  It may not seem like a high fee, but the costs do add up.  If you are filing a bankruptcy as a married couple you will have to pay double the fees as each is separate.

Once a decision on the bankruptcy has been made you may have to lose a great deal of your assets.  Typically a solicitor will tell you what the court normally awards the creditors and will ask that you seek solutions before you reach the court stage.  Most often a court will not take a house away from you, but they can take the equity from it.  They can also take cars with loans, boats, and other liquid assets that will pay the creditors off.  A bankruptcy will cost as much as you can lose to creditors during the formal proceedings.  You also have the lawyer fees to deal with.  The lawyer fees can change depending on what solicitor you decide to go with.  You may want to compare solicitor costs before signing with one person.

Lastly in bankruptcy you need to consider the length of time a bankruptcy can affect you.  A bankruptcy will usually take a year to be discharged in the courts.  Once the discharge occurs you still have issues regarding credit.  Typically after 3 to 4 years you are able to again get credit lines with loans.  Before that time there will not be a bank willing to lend money.  Many credit cards companies may also refuse to lend money.  So you can expect a bankruptcy to affect your life for four to five years for the entire process.