| Plain English impartial advice for anyone with debt problems who wants to find out more about bankruptcy and the alternatives including entering into an Individual Voluntary Arrangement (IVA). |
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How to make yourself bankrupt
 If you have looked at all of the options and are considering filing for bankruptcy in England and Wales, here's our step by step guide on how to make yourself bankrupt. more |
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| BANKRUPTCY FIGURES FOR ENGLAND AND WALES, SCOTLAND, AND NORTHERN IRELAND In 2009, the number of personal bankruptcies in England and Wales totalled 134,142 while in Scotland the figure was 23,482 and in Northern Ireland 1,957. In 2008, the number of personal bankruptcies in England and Wales totalled 106,544 while in Scotland the figure was 19,864 and in Northern Ireland 1,638. |
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Media coverage of changes in the bankruptcy laws have painted a picture of bankruptcy as an easy way out of your financial obligations. But is bankruptcy really the easy way out that some would have you believe? Will you really be debt free after just one year? Will your boss be told? And what will happen to your house? |
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Home repossessions at highest level since 1995 11th February 2010 46,000 homes were repossessed during 2009 according to the latest figures from the Council Of Mortgage Lenders - the highest number since the height of the last property crash in 1995. And there was more bad news with regards to mortgage arrears. 188,300 mortgages ended the year with arrears equivalent to at least 2.5% of the outstanding mortgage balance - 3% higher than at the end of 2008. That means for every £100,000 borrowed, 188,300 borrowers are in errors by at least £2,500. Within the total number of arrears cases, there is a different picture in terms of what seems to be happening among households with lower levels of arrears (where the numbers are improving), and higher levels of arrears (where the numbers are little changed). This suggests that at present some borrowers facing only modest difficulties are being helped by low interest rates to get back out of trouble, whereas those with more severe problems may be stabilising their arrears but not recovering from them. "The fact that mortgage arrears and possessions did not rise as much as we feared in 2009 is testament to the effect of low interest rates, and a great deal of concerted effort by lenders, government and the advice sector to help borrowers to address financial difficulties when they occur," said CML director general Michael Coogan. "We are not out of the woods yet - 2010 will still be a challenging year for many borrowers, and some households will inevitably find their finances being squeezed if and when interest rates do eventually rise. "But borrowers should feel reassured that lenders want to help them keep their homes wherever possible. The vast majority of people who get into arrears manage to keep their homes, and will do so even if interest rates rise. Seeking advice as soon as financial problems occur will help to minimise the risk of the situation getting out of control." 2009 - the worst year for personal insolvencies since records began 5th February 2010 A record number of people in England and Wales were made insolvent during 2009 according to the latest figures from The Insolvency Service. A total of 134,142 people were declared insolvent in England and Wales during 2009 - up by 26% on the previous year and surpassing 2006, the previous worst year on record when 107,288 people were made insolvent. The last quarter of 2009 saw 35,574 people declared insolvent, with 17,007 being declared bankrupt, 13,219 entering into Individual Voluntary Arrangements (IVAs) and 5,348 receiving Debt Relief Orders (DROs). 84% of bankruptcies during the last quarter were the result of people making themselves bankrupt. The number of businesses going bankrupt during 2009, 6,355, also set a new record. 24,000 more Scots to go bankrupt during 2010 2nd January 2010 24,000 Scots will declare bankruptcy during 2010, according to one of the UK's biggest firms of accountants and business advisers. PKF believe that one out of every 200 adults in Scotland faces financial ruin during 2010 even if the economy improves, and it is warning that similarly high numbers of personal bankruptcies could continue for years to come because of the high level of personal debt north of the border. A similar record number of people were made bankrupt in Scotland during 2009. but the number of bankruptcies has almost doubled since 2007 and increased by fivefold since 1998. "Given that Scottish personal insolvency currently runs at twice the rate of England and Wales, it is clear that the situation is going to continue to be problematic for many people in the coming year," said Bryan Jackson, corporate recovery partner with PKF. "Whilst there are signs that the overall bankruptcy numbers are flattening out at around 24,000 people per year, this is an astonishing level of personal insolvency. The sad news is that this is a pattern which is likely to be repeated, not just in 2010, but for many years. "Some may argue that this is due to the easing of the process of insolvency, but this still indicates a very high level of personal indebtedness which new methods only highlight rather than explain." |
 Answering your door to find a bailiff stood on your doorstep can be a distressing and frightening experience, particularly since few people know what powers bailiffs have at their disposal and what rights you have when dealing with them. One question that will no doubt be on your mind. Do bailiffs have the right to enter your home? and if so what are bailiffs allowed to seize if they do gain entry?  One big fear of anyone in debt or contemplating bankruptcy is that they will end up on a credit blacklist. The good news is that there is no such thing as a credit blacklist. Five more myths about obtaining credit |
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 If you are unable to pay your debts when they fall due and have little prospect of doing so in the foreseeable future, a court of law can intervene and place you in a state of bankruptcy. In England and Wales, you can either make yourself bankrupt by applying to the court to do so or a creditor who you owe at least £750 can petition a court to have you declared bankrupt. In Scotland, personal bankruptcy is called sequestration.  An Individual Voluntary Arrangement or IVA is a formal agreement, between you and the people you owe money, to pay part or all of your debts over an agreed period of time. more  A Debt Relief Order or DRO is a new alternative to bankruptcy aimed at those on low incomes with few assets. more  Unlike bankruptcy which only affects individuals in the UK, insolvency can apply to both companies and individuals. more  A CCJ - or County Court Judgement - is an order made by a County Court for a debt to be repaid. more What to do if a County Court Claim is made against you |
Number of CCJs issued hits ten year high
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