The Insolvency Service has reported that the number of insolvencies has decreased by 4.6% compared with the same time last year, yet there were still a whopping 24,840 insolvencies throughout the UK.
The number of bankruptcies had eased somewhat due mainly to the introduction of Debt Relief Orders, which is a type of ‘mini bankruptcy’ for those on very low income with less than £15,000 of debt. However, bankruptcies may well increase again as continued disillusionment with IVAs results in people abandoning these in favour of bankruptcy.
Another factor which might lead to an increase in the number of court sanctioned insolvencies is a growing awareness of the futility of Debt Management Programmes. Most people realise that the capital is never paid off and that promises of interest rate freezes are only temporary.
To be fair, Debt Management Programmes do keep creditors at arm’s length, but they don’t solve the problem which is getting rid of the debt.
Bankruptcy UK offers a full bankruptcy administration service and will submit your bankruptcy application online. Court appearances are no longer required for bankruptcy. Call us for bankruptcy help on 01425 600129 or for an informal chat about your circumstances.