Bankruptcy
 |
| Watching the pennies... | Over 33,000
people went bankrupt in England and Wales between April-December 2005. Just
over two thousand of them lived in Devon and Cornwall. This is the story
of Chris, who went bankrupt after Christmas. Chris' problems started three
years ago when he took time off work to look after a dying friend. By last
Christmas he'd seen two businesses go under and his father had also died. On
January 4th he went bankrupt owing £22,000: ''to have
someone ring you up and say they're dying of cancer, what else can you do but
see to their last wishes, and if you're the man they ask to see to that then there's
nothing you can do about that
things just seemed to go wrong from then on.'' Behind
every bankruptcy there's a story. Cheap credit, the boom in consumer spending
coupled with an unexpected life event most commonly relationship breakdown, accident,
illness or redundancy and you find yourself unable to meet the monthly bills,
relying heavily on credit and ignoring unopened bills. For some people
this is the start of a journey into debt which ultimately leads them to the bankruptcy
court. Increase in bankruptcies According to the Insolvency
Service, in the three months to the end of December 2005, 17,562 people filed
for insolvency, up 46% on the previous year, the highest since records begin in
1960.
 |
| Take early action to prevent money woes | Of
the total, 12,043 went bankrupt while 5,519 entered into an individual voluntary
arrangement (IVA) with creditors in an attempt to restructure their debts and
pay them off. The Insolvency Service also estimates that by the end of March
over 55,000 people will have filed for insolvency and the figures for the financial
year 2005/2006 are expected to be even higher. But finding yourself struggling
with debt doesn't automatically mean you're heading for the bankruptcy court.
Early action Tackle it early and talk to someone about it
and the outcome can be very different. Colin Trend from Money Advice Plymouth
has this to say: ''We would encourage anyone with a debt related
problem to talk to someone as soon as they realise their finances are getting
away from them. "The earlier you seek help from one of the many free
debt advisory services out there the more options are available to you. "If
you leave it until you're about to be evicted or the bailiffs are knocking at
your door, there are far fewer options open to you. Remember, it's rarely as bad
as you think.'' Of the many people coming through the doors
at Money Advice Plymouth, Colin only helps a small number of them to go bankrupt,
mostly he manages to find another way for his clients to get themselves out of
debt. Remember, it's a last resort and there are many agencies on hand
to help. All that said, a good place to start talking about your debt problems
is to a friend. Confide in someone you can trust and let them help you.
With so many people in debt there's one thing we know for sure. You are not alone. Help
at hand For free information and advice try these organisations: Citizen's
Advice Bureaux Citizens Advice Bureaux provide free, confidential and
independent advice from nearly 3,400 locations including in bureaux, GP surgeries,
hospitals, colleges, prisons and courts. Consumer Credit Counselling
Service CCCS is a charity offering free and confidential advice, from
budgeting to debt management plans. National Debtline National
Debtline offers free and independent advice on how to deal with debt problems.
Its website covers personal budget planning, sample letters for writing
to creditors, debt advice and debt management plans. There's also a
free phone number if you would rather talk to someone in person. Payplan
Payplan are a free debt management company who make repayment arrangements between
clients who owe money and the company they owe money to. Advice UK
Advice UK is the UK's largest support network for free, independent advice centres.
Just click on Advice & Links on the left hand side of the page. Legal
Service Commission The Legal Service Commission offers free high-quality
legal information to help you deal with your legal problems. Money Advice
Plymouth Based in Plymouth, Money Advice can deal with any money related
issue you might have including debt problems and management. 01752 208128
Source: DTI Links relating to this story:The BBC is not responsible for the content of external
websites |