Bankrupt Britain as Insolvencies Increase

25,264 people have declared themselves insolvent (meaning that they have filed for bankruptcy or an IVA) in the first three months of 2008, this is a rise of 1.7% from the end of 2007.

This won’t be a surprise to many people as there has been a lot of financial doom and gloom so far this year, such as the rise in shopping bills, utility bills and petrol costs. Recent research has shown that, on average UK households are 15% worse off compared to only a few years ago.

uSwitch.com predict that the number of people declaring themselves insolvent could rise to 101,056 by the end of the year. There are many reasons why people might declare themselves insolvent through declaring themselves bankrupt or writing off unaffordable debt with an IVA. Reasons for insolvency can include losing a job, unexpensive expenses or not being able to cope with the increases costs of living. Reports suggest that 292 people will declare themselves insolvent today alone, a figure which should send people seeking additional debt advice.

Ann Robinson, Director of Consumer Policy at the site, comments: “At the moment, consumers are being hit from every angle with price hikes across all areas from energy to mortgages right down to a 25% increase in the cost of petrol. This may be making many people feel that their finances are simply out of control. If people find themselves in financial difficulty the worst thing they can do is ignore the problem and hope it goes away. It won’t.”

One Advice offers Free Insolvency Advice

If you are worried that you may have to declare yourself bankrupt or you are having serious money worries, please get in touch with our expert One Advice debt team on 0800 048 1752.

We are on hand to help you with your finances and to deal with your money more effectively. There are ways that you can control your debt without having to declare yourself bankrupt, options include:

Debt Management Plans: This is an informal agreement between the debtor and their creditors. We arrange a smaller monthly payment to your debt which is based on what you can afford. Some creditors are also willing to freeze interest and charges on your debt.

IVA: An IVA is short for Individual Voluntary Arrangement. It is a legally binding agreement between the debtor and their creditors. An IVA has the distinct advantages that you only repay the amount of debt that you can afford, everything else will be written off on completion of your IVA. Typically, you will make agreed monthly payments for 60 months and interest and charges on your debt is automatically frozen.

For advice about the range of debt solutions available, feel free to get in touch with the debt team at One Advice. We will help you to go through your finances and try and find the debt solution which is right for you.