Does bankcruptcy in UK affect chances of residency?

I've just returned to Uk after year away in NZ and have been invited to apply for residency after a successful EOI application.
But in tying up my loose ends here I'm having to decide whether to go bankcrupt or not, since on Kiwi wages I've got no chance of paying back the debt I owe on loans, credit cards etc.
I've been getting advice from CAB, Debt advisors etc who all say the best thing for me is bankcruptcy but they cant advise on whether it will affect my current residency application (which I must submit in July).
- Does anyone have any advice on this since I've been too scared to call up immigration and ask in case it scuppers my application.
- and does anyone know if the same rules that apply to UK bankcrupts in this country also applies when I'm in NZ. For example, do I have to declare it to banks, can I stand as an MP? All that kind of stuff.
This is a big concern hanging over me - and a big decision which I've got to make in the next few weeks - so if you have any useful info please get in touch on andrea_glazier@yahoo.co.uk or post a reply.
Many thanks