| 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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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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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." Time called on former landlords who fled to Spain 11th December 2009 Two bankrupt former pub owners from Ashford in Kent have been given suspended prison sentences after failing to tell the Official Receiver that they had sold their pub and fled to Spain with the profits. Lynda Anne Parker and Graham Richard Hornigold, former owners of The Woolpack Inn, plead guilty to offences under the Theft Act 1978 and the Insolvency Act 1986 at Canterbury Crown Court. Despite owing creditors almost £46,000, Parker and Hornigold sold their pub in March 2002, making a profit of over £200,000, and fled to Malaga in Spain where they set up home. Despite a warrant being issued for their arrest in 2005, the pair were only brought into custody in January 2009 on their return to the UK. On Thursday the 10th of December, Parker was sentenced to four months imprisonment, suspended for 12 months, and Hornigold was sentenced to nine months imprisonment, also suspended for 12 months. "We are determined to crack down on cheats like these who profit by deception," said Business Minister, Pat McFadden. “When someone acts in this way they are effectively stealing from honest creditors, who are owed money and can suffer as a result. This prosecution sends a clear message to would-be fraudsters that they won’t get away with it." |
 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 |
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.
Number of CCJs issued hits ten year high
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© Bankrupt.co.uk 2007, 2008, 2009, 2010. All rights reserved. Please note the contents of this website are for information purposes only and do not constitute financial advice. Please seek independent professional advice before taking action that may affect your financial well-being. |
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