Christine(posted 7864 days ago)Bankruptcy does have a lot of implications, you're right. From your brief scenario it would appear that he has little to lose other than perhaps an income payment order (an order that he pays a regular monthly amount from his income for the period of bankruptcy (2 years)). However, it is not really safe to give any advice without a much more detailed discussion of the his/your/the circumstances.
If he really does intend to go bankrupt you should make another attempt to negotiate a full and final settlement - telling the lender that he has no assets or property and if the offer of £1k is not acceptable he wants to go bankrupt. If they don't accept, I would do nothing. I wouldn't waste the £370 bankruptcy fee/deposit - wait for the lender to do something. They might give up, they might sue or they might threaten bankruptcy themselves.
The only advantage in declaring himself bankrupt is that he will be discharged after 2 years. If he is made bankrupt, he will have to wait three years.
Take detailed advice. Bankruptcy may be an appropriate solution, but some would say it's a bit of a drastic solution.
All the best
Guy