Bankruptcy Is Still An Option
Bankruptcy is “still a valid option for struggling borrowers” according to financial solutions company Think Money. It was responding to the latest Insolvency Service statistics.
The figures showed a significant drop of 32.1% in bankruptcy orders over 12 months.
The third quarter of this year compared with the same quarter last year showed an 11% drop in insolvencies overall – largely due to the fall in bankruptcy orders. Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs) were up by 0.7% and 7.5% respectively over the same period.
The figures may suggest a shift away from bankruptcy as a way to deal with debt problems.
However, Think Money says that bankruptcy is still a valid option in certain circumstances and if you’re struggling to find a way out of debt, it’s best to get advice about what to do sooner rather than later, to avoid more serious consequences later on.
A spokesperson for the company commented: “While we urge struggling borrowers to consider all the options for tackling their debts, they certainly shouldn’t write bankruptcy off as a possible solution.
Bankruptcy continues to help thousands of people every year, and for some people’s circumstances it can be more suitable than an IVA.” Leave your comments and experiences about bankruptcy are welcome below .
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Great article!