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Bankruptcy is a solution to debt

January 5, 2008 by admin  
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Despite the “stigma” attached to it, declaring yourself bankrupt is a “financial solution” to debt, according to financial experts.

The Consumer Credit Counselling Service (CCCS) said that most debtors are expected to opt for bankruptcy as an option to clearing debt over Individual Voluntary Arrangements (IVAs).

As the number of insolvencies is expected to rise in 2008, James Ketchell, spokesperson for the CCCS, said: “Bankruptcy seems to have a very bad stigma attached to it, and people for that reason do not go through with it.”

“However we view it as a solution, another way of sorting out one’s financial situation.”

Chartered accountancy firm Grant Thornton recently predicted that 10,000 individuals a month likely to become insolvent in 2008.

Due to Christmas debt 28,000 individuals are facing insolvency in the first quarter of 2008 alone.

In addition a Guardian ICM poll held at the end of December 2007 found that 55 per cent of consumers remained confident about their personal finances.

Tags: consumer credit counselling, financial solution, firm grant thornton, Chartered, insolvency, business, solution, financial situation."Chartered accountancy

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