Debt Problems? Read this if you're thinking of bankruptcy
25 per cent of the UK adult population are saying their financially out of control with a major number, around one million three hundred thousand people, admitting their finances are entirely unmanageable, a report by the insurer AXA says.
The insurer goes on to say that over a million UK residents have borrowed too much credit and are now struggling to keep up their repayments, with less than 4 million struggling to manage their credit card bills.
500,000 people have been threatened with the bailiffs or repossession and consumer county court judgements (CCJs) has reached their highest level since the start of 2007's third quarter.
The Registry Trust, the public interest company which manages the register of judgements published within England and Wales; stated that CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007. This is 25 per cent increase from the second half of 2008
Individual insolvencies in England and Wales increased to 27,087 in the third quarter of 2008, up 8.8 per cent from 24,893 in the previous quarter.
Bankruptcies have increase by 12 per cent from 15,500 to just over 17,000 in the second part of the year and personal individual voluntary arrangements (IVAs) are too up 3 per cent from the three months previous.
The credit crunch could be blamed for the increase in corporate and personal insolvency throughout 2008, however, its patently obvious that further failures are going to be compounded by the recession throughout 2009.
Unfortunately the planned Simplified Individual Voluntary Arrangement SIVA, due out next year has been abandoned by the Insolvency Service
A simplified version of the IVA, for consumers with debts up to 75,000 and that would only require approval by a simple majority of creditors rather than the 75 per cent majority under normal IVAs, was due to be introduced in April 2009.
The British borrower drowning in debt not wishing to go bankrupt really should consider both the individual voluntary arrangement or a more informal debt management program to help get your debt problems under control.
The insurer goes on to say that over a million UK residents have borrowed too much credit and are now struggling to keep up their repayments, with less than 4 million struggling to manage their credit card bills.
500,000 people have been threatened with the bailiffs or repossession and consumer county court judgements (CCJs) has reached their highest level since the start of 2007's third quarter.
The Registry Trust, the public interest company which manages the register of judgements published within England and Wales; stated that CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007. This is 25 per cent increase from the second half of 2008
Individual insolvencies in England and Wales increased to 27,087 in the third quarter of 2008, up 8.8 per cent from 24,893 in the previous quarter.
Bankruptcies have increase by 12 per cent from 15,500 to just over 17,000 in the second part of the year and personal individual voluntary arrangements (IVAs) are too up 3 per cent from the three months previous.
The credit crunch could be blamed for the increase in corporate and personal insolvency throughout 2008, however, its patently obvious that further failures are going to be compounded by the recession throughout 2009.
Unfortunately the planned Simplified Individual Voluntary Arrangement SIVA, due out next year has been abandoned by the Insolvency Service
A simplified version of the IVA, for consumers with debts up to 75,000 and that would only require approval by a simple majority of creditors rather than the 75 per cent majority under normal IVAs, was due to be introduced in April 2009.
The British borrower drowning in debt not wishing to go bankrupt really should consider both the individual voluntary arrangement or a more informal debt management program to help get your debt problems under control.
About the Author:
Enable Finance Ltd offer a FREE private and confidential debt management advice service to ensure our customers don't drown in debt. For our Corporate clients Enable Finance has a dedicated corporate recovery unit if your business is facing debt problems.
posted by Credit Counseling at
9:20 AM
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