A friend of mine has run up stupid debts... problem is now they aint paid anything (rent, council tax, ect) for about a year because of problems with work, not getting paid and things.

Now unfortunately, the interests and the amounts wanted back far out weight the amount of money they are earning and now the landlord is trying to throw em out because of non payment of rent.

They have done every other option, except bankrupcy.

I understand the general gist of the whole thing, stops legal proceedings and means any debtors can't take any further action against them and while they will still owe the money, they wont need to pay it back.

But what are the long term ramifications?