The Government have recently announced that the number of people who can no longer afford to pay back their debts (meaning they are insolvent) is increasing, with over 100,000 people being declared bankrupt or opting for an IVA in 2007.
According to The Insolvency Service, this figure is hitting record levels especially in comparison to the figure in 2005, where less than 70,000 declared insolvency. These problems have stemmed from the worldwide credit crunch and the increased price of living, with these figures set to go even higher in 2008.
Help for Those Facing Bankruptcy
IVA’s (Individual Voluntary Arrangement) are a Government introduced alternative to bankruptcy, and you should consider exploring this route first. One Advice can offer you expert advice and information on IVA’s and, if you qualify, you could write off a large proportion of your debt and avoid some of the implications of bankruptcy, such as selling your home.