Debt Advice Trust Blog

The length and depth of Britain’s recession over the last two years has challenged even the most successful of companies as well as the most carefully managed household budgets. As a consequence, bankruptcy in the UK has rocketed. In 2009 just short of 80,000 individuals were declared bankrupt. Company failures totalled around 50,000 – up significantly on 2008. No wonder so many people are seeking advice on bankruptcy.

What’s more, experts predict that with so many people and organisations already at borrowing limits, already rationalised and having over the last couple of years, pulled together all the available cash they could get their hands on, things may well get worse before they improve. With the banks reluctant to lend, even good businesses – profitable, well-run companies with skilled people and great ideas – are falling by the wayside.

All for the sake of cash. Cash flow – or rather the lack of cash flow is a major factor in taking many companies and individuals to the point of bankruptcy.

Advice from the experts is that, though the natural inclination when things aren’t going well is to sometimes stick your head in the sand and pretend it’s all ok, just thinking that your financial problems will disappear of their own accord is folly. Don’t kid yourself. If things have got out of control, not only do you need a reality check you also need some independent and professional bankruptcy advice.

Realise too that bankruptcy in the UK isn’t the end of the world. Whilst you may have to give up your assets and even your home, as well as have financial restrictions imposed, such as the ability to obtain credit, often a bankrupt can be discharged and freed from debt liability in only a year.

In some cases there may be other less restrictive options such as IVAs (Individual Voluntary Arrangements) or (in the case of smaller debts) Debt Relief Orders that may be more suitable. If you really have run out of cash though and can’t see anyway of raising it to pay off your creditors then bankruptcy may be your best choice.

For all the latest rulings, legislation and advice on bankruptcy UK, consumers have a whole range of agencies ready and willing to offer the necessary guidance. Make sure you take the proper professional advice you need.

Tags: Bankruptcy, Debt advice, debt help, Individual Voluntary Arrangements, iva

This entry was posted on Thursday, February 18th, 2010 at 12:23 pm and is filed under Debt advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.