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Debt Conusellors Release Bankruptcy Report

The Debt Conusellors have released their Bankruptcy report, and the figures are not reassuring. The report shows that the bankruptcy rate in the UK is at an alarming state. The report indicates that 20,461 bankruptcies took place in the UK on 2005`s fourth quarter alone. A 15 percent rise on the third quarter, and a 57 percent rise on the fourth quarter of the previous year. In total, there were 67,580 bankruptcies filed in 2005 but those in the debt advice industry are warning that as many as 100,000 people could go bankrupt in 2006.

The Bankruptcy Report, therefore, has been produced to help people with serious debts to understand the details and processes involved in bankruptcy and, above all, avoid bankruptcy altogether. The Bankruptcy Report also aims to dispel some of the myths that have developed around bankruptcy, such as it being an `easy way out` of serious debt problems, on the contrary, bankruptcy carries with it serious risks to key assets as well as numerous financial restrictions, as detailed in the Report.

Another key aspect of the Bankruptcy Report is its detailing of alternatives to bankruptcy, such as the IVA, or Individual Voluntary Arrangement, whereby someone with debts over ?15,000 can enter into an agreement with creditors to pay off a greatly reduced sum over a five-year period. John Porter, a senior counsellor with The Debt Counsellors, says: "Everyone knows of the term `bankruptcy` but many are unaware of the details. So the Bankruptcy Report provides vital information for anyone who wants or needs to find out more."