Personal bankruptcies have increased in England and Wales by 75%, which is their highest level in three years, according to the credit-rating agency, Experian.
There were 480 new bankruptcies in June 2005, compared with 275 in June 2003. This brings the total in the first half of the year to 2,496, 513 more than in the same period last year.
Experian have said that more than 5,000 people have gone bankrupt since the Enterprise Act came into force in April last year, cutting the average length of time until discharge from bankruptcy from three years to one year.
Our view
The the new laws meaning that bankruptcy debts are cleared and discharged after just one year mean that more and more are opting for Bankruptcy. This decision should not be taken lightly, you carry the 'bankruptcy' tag for life. Failure to dislose such a fact e.g. 10 years later when you apply for a mortgage is a criminal offence.