The "last resort" framing
Bankruptcy is often described as a last resort because it involves loss of assets, restrictions during the 12-month period, and public record.
However, for people with few assets, low income, and unaffordable debts, the alternatives (DMP for 15+ years, or trying to service debts that will never reduce) can be worse in practice.
Bankruptcy at 12 months to discharge is often the cleanest exit for those in a genuine hardship situation.
When bankruptcy is a good fit
Debts you cannot realistically service at any reasonable rate.
Little or no equity in a home (so nothing significant to lose).
No specific job or professional issues that bankruptcy would create.
No significant assets that would be lost in the estate.
A total debt over £50,000 (making DRO unavailable).
When bankruptcy is not right
Significant equity in a home you want to keep.
FCA-regulated financial services job or similar role with disclosure requirements.
Company directorship you want to maintain.
Debts small enough that DRO or informal solutions would work.
Assets that would be lost (specialist tools, valuable inheritance, etc).
The comparison
DRO: cheaper (£90 vs £680), 12-month duration, but caps at £50,000 debts and £2,000 assets.
IVA: no upfront cost, 5-6 years of payments, but protects assets and often better for higher income.
Bankruptcy: £680 upfront, 12 months to discharge, cleaner exit but stricter asset dealing.
A regulated debt help specialist can compare these against your specific circumstances.