Debt - Debt Ridden Brits Claim Bankruptcy - 07/05/2008

A new study by online credit information provider Equifax has revealed that more and more Brits are claiming bankruptcy as they struggle to cope with their debts.

The study claims that 130,000 people will be declared insolvent by the end of this year, a 30 per cent rise since last year. This is a very large rise in the space of just one year and Equifax are concerned that people are not aware of the long term drawbacks to bankruptcy.

Another study by Insolvency Service has revealed that many consumers who claimed bankruptcy in 2007 did so without the advice of a financial advisor, creditor or any industry official.

Customers are warned that while bankruptcy may seem like the solution at the time, it should only be considered as a last resort and other avenues should be fully explored before taking that route.

Debt management plans should always be the first option when debts seem out of control, advises Neil Munroe, external affairs director for Equifax:

“It’s important to consider these other options, because if an individual is declared bankrupt this fact will stay on their credit file for 6 years seriously affecting their ability to get credit, despite the possibility of bankruptcy discharged after one year,” he explains.

Ann Robinson, Director of consumer policy at uSwitch.com agrees with Mr Munroe:

“It's worrying that so many people are resorting to individual insolvencies, be it an IVA or bankruptcy, to resolve their personal debt problems. These measures should always be the last resort for anyone with financial problems as they have a very serious impact on people's credit histories and their ability to borrow in the future. In the case of bankruptcy, it could also impact on employment prospects.”

“We would strongly advise that individuals take good advice before declaring themselves bankrupt” confirmed Neil Munroe.

Bookmark with:
  print Print Preview   email E-mail to a friend
 
Comments
Not comments have been posted yet.
 
Do you have something to say? (maximum comment length of 250 characters)

Post your comment
 
 
 
Related News
  29/12/2009 - Consumers paying card debt, say UK banks. U.K. banks reported recently that they increased lending to home buyers in November but...
22/12/2009 - Teenagers in fear of parents' debt. Teenagers in the UK are currently a debt-fearful lot, a recently released survey showed....
15/12/2009 - U.K. housing market recovery to stall in 2010. A property firm has revealed that the U.K. housing market recovery will undergo a...
 
Related Guides
  Enterprise Act 2002 - Why change the legislation?. Enterprise Act 2002 Bankruptcy How to deal with bankruptcy Definition of terms (BRO, IPA,...
What are the key points of the new legislation?. A guide to Bankruptcy Bankruptcy How to deal with bankruptcy Definition of terms (BRO,...
Bankruptcy. A guide to Bankruptcy Bankruptcy How to deal with bankruptcy Definition of terms (BRO,...
 
Related Articles
  Rise in bankruptcies reaches new heights. After many months of gloom in the British economy it comes as no surprise...
Debt Help — a Great Solution to Deal with Your Debt Problems. Debt is a major problem for a lot of people in the UK these...
Try Debt Consolidation to get Rid of the Previous Debt. Many people are in debt these days and more are going to be in...

Debt News
29/12/2009 - Consumers paying card debt, say UK banks. U.K. banks reported recently that they increased lending to...
Read More
22/12/2009 - Teenagers in fear of parents' debt. Teenagers in the UK are currently a debt-fearful lot,...
Read More
15/12/2009 - U.K. housing market recovery to stall in 2010. A property firm has revealed that the U.K. housing...
Read More
09/12/2009 - Debt under the covers. It has been revealed that a shop which mistakenly...
Read More
More News >>