Published on November 7th, 2011 | by Pete0
Bankruptcy ‘still a viable option for struggling borrowers’
Think Money has stressed that bankruptcy could still be a viable option for some people with very serious debt problems, in light of the latest insolvency statistics.
Figures from The Insolvency Service revealed that, in 2011’s third quarter, the total number of personal insolvencies in England and Wales saw an overall fall of 11% – compared with the same quarter in 2010 – with bankruptcy orders falling by 32.1% during that period.
Although the total number of bankruptcies dropped, it was a different story for some other forms of insolvency. Individual Voluntary Arrangements (IVAs) were up by 0.7% on 2010’s third quarter, and 7.5% higher than the previous quarter; while Debt Relief Orders (DROs) also increased – up 7.6% on the period between July and September 2010.
Despite the statistics suggesting that greater numbers of people are turning away from bankruptcy as an approach to serious debt problems – and choosing other solutions instead – an expert from Think Money has reminded borrowers that, sometimes, bankruptcy is still the most appropriate option.
A spokesperson for the financial solutions 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.”