The Department of Trade and Industry has released its most recent set of personal insolvency figures. The number of personal insolvencies or bankruptcies has increased by almost 30% since last year. In total, 10,924 people were declared bankrupt. This is just 18 short of the highest ever level, declared in 1993.
Our View
The rules on bankruptcy have eased dramatically and it is now possible for people to declare themselves bankrupt and have it removed within 12 months. This has meant that bankruptcy is taken less seriously and used more frequently because the implications have been watered down.
We would advise anyone thinking of declaring themselves insolvent to think again and again. Whilst the label of ˜bankrupt" could be removed in 12 months, the financial implications could stay with you for the rest of your life.
See our Money Clinic Feature on Bankruptcy.