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BankruptcyNews
Junior Member
358 Posts |
 Posted - 01 June 2007 : 09:41:54
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Steep rise in numbers of UK citizens going bankrupt
Can a local council make an individual bankrupt for not paying their council tax? Will anyone know if you have gone bankrupt? Does it show on your credit file? Will it affect your ability to get a job?
According to the latest report, last year saw another steep rise in the number of people that had county court judgments registered against them, with nearly 850,000 consumers having CCJs registered. As more and more consumers are incurring these judgments, many will see bankruptcy as an easy way out.
At the end of 2006, for the first time in the UK, more than 100,000 people had declared themselves bankrupt. Government figures also show that 15,356 people bankrupted themselves and 11,299 agreed an IVA in Q1 2007. Equifax, the instant online credit information provider, is concerned that many consumers do not understand the implications of going bankrupt, thinking that it’s simply an easy way out of debt with no real consequences.
“The 2002 Enterprise Act meant a bankrupt’s debts can be written-off after one year instead of three” confirmed Neil Munroe, External Affairs Director, Equifax. “This has led to a number of people struggling with debts seeing this as an attractive option to wipe the slate clean. However, whilst the bankruptcy will be cleared after a year, we are concerned that some people may not realise that the record of bankruptcy will remain on their credit file for six years. And this could have quite a serious impact on their future.”
Lenders use an individual’s credit file when assessing applications for credit or loans. Bankruptcy could result in them either being declined or paying a premium. It can also affect their ability to get a job. It can even affect a person’s ability to get a mobile phone – because a credit agreement will be taken out for the line rental.
Source: qck.com
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Steep rise in numbers of UK citizens going bankrup
