1 Arrangements under Part X of the Bankruptcy Act avoiding bankruptcy. 2  A person who is insolvent may avoid bankruptcy by reaching an understanding with creditors for the satisfaction of their claims. 3  This can be done by way of a personal insolvency agreement under Part X of the Bankruptcy Act.eople who are declared bankrupt are also unable to apply for certain jobs especially when they are un-discharged bankrupts. It's very difficult, for example, to work as a company director and obtain a position in the financial services sector if you are declared bankrupt.