Bankruptcy ‘could be solution’
Article Category: IVA (Individual Voluntary Arrangement) Help and Advice
Declaring themselves bankrupt could be the only "solution" for many over-stretched debtors, according to a debt charity.
The Consumer Credit Counselling Service (CCCS) says that although it still carries a stigma, bankruptcy could be the only way out for many.
It warns that the number of financially-stretched people hitting the financial buffers is due to go up in 2008 with most still opting to go bankrupt rather than go down the Individual Voluntary Arrangement (IVA) route.
James Ketchell, spokesperson for the CCCS, said: "Now we’re helping people through the whole process, with the paperwork – and, if possible, helping them to apply for trust grants and things like that, so that they can help with the cost of actually declaring oneself bankrupt."
Accountancy firm Grant Thornton recently gave an estimate of 10,000 individuals a month likely to become insolvent in 2008.
Around 28,000 are estimated to be facing insolvency in the first quarter of the year alone, due in part to Christmas debt.
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