1. Creditor petitions for bankruptcy.   Creditors beware as you could be liable for a lot of costs and little satisfaction. However this is not an ideal solution for the individual either.  In the long run creditors will need to be engaged with and far better to do so outside a formal legal structure if possible to reduce costs and protect reputations. 

2. Individual seeks to apply to be declared bankrupt.  In this situation a court official is appointed to administer (Official Assignee) the bankrupt's affairs.  The bankrupt must surrender all their assets other than basic items to the Assignee and they have full rights to deal in the assets etc on behalf of the bankrupt. Overtime these assets are realised for the benefit of the creditors.  A person can still continue to work but income would be subject to review by the Official Assignee and any deemed surpluses would be used for the benefit of the creditors. 

Because this is court administered it can become expensive.

3. Become an arranging debtor.  The last is a form of personal examinership.  Despite being in legislation that is over 20 years old it is relatively untested.  Essentially it gives the person some protection from their creditors whilst they arrange their affairs and negotiating a settlement.