The Citizen’s Advice Bureau can help people for free, but it can take some weeks to get seen. They can also help people go through bankruptcy proceedings. But a bankruptcy petition is heard in court, and they can still make you pay money back.
If the amount he owes is less than £15,000, he could get a Debt Relief Order. You can contact National Debtline for free and they process it all over the phone, and by post. You don’t have to go to court, but you do have to do a lot of the correspondence, form-filling yourself. There are quite a lot of stringent conditions attached to one though.
National Debtline http://www.nationaldebtline.co.uk/ is actually funded by the banks. Basically with a debt relief order, you have a year’s grace where people can’t chase you for money at all or add any interest, and if your financial situation improves within that year then you must start paying your creditors back. The best thing for him to do is just agree a longer time frame with each of his creditors to pay back what he owes. He should get it all in writing. Say if they force bankruptcy on him, then they’ll get nothing back at all. He can be forced to sell most of his assets to pay off creditors aswell. So bankruptcy isn’t always the easy way out!!
National Debtline also operate Business Debtline http://www.bdl.org.uk/ – this might be just what he’s looking for, again they don’t charge for their advice or take a fee for organising anything for you as far as I’m aware.