Hi B
Do you have a family home as well?
If you don't have any other secured loans, i.e. mortgages, then I think that you are better off with unsecured debt. When the new Personal Insolvency Act comes into force, you will be able to apply for a Debt Settlement Arrangement.
I think that KBC will be less interested in objecting to a DSA. They might object to a Personal Insolvency Arrangement if you have a home loan.
It's best to provide all the information as requested in the first post on this forum, so you can get comprehensive opinions.