Bankruptcy Levels Increase

Bankruptcy levels have increased again this year, with the total amount of people who have to go down this road and declare themselves bankrupt, is up 40% on the totals last year, with an astounding 15,500 from April to June this year having seen their finances getting to much for them to service.

This rise from April to June was a 37% increase on the same time last year and with the lifestyles of the rich and famous consistently in our newspapers, magazines and on TV, it has made for people to try and up grade their way of life and turning to credit cards to finance it, when they simply cant afford it.

The excessive use of credit cards and store cards that has seen us all borrow in the region of £1000 billion, so it is hardly any wonder that we are now seeing so many people falling over the parapet and into bankruptcy, which just doesn’t seem to have the same stigma attached to it now, as it used to.

Due to the levels of customers who are facing bankruptcy, banks such as Barclays now have to accommodate for this and plan for the future by raising the fund that they set aside for bad debtors by 20% to £700 million and with the levels of bankruptcy being set to double, then the move by Barclays is one for the future.

Bankruptcy for most now is not as an embarrassing situation as it used to be, this could be due to the fact that the guidelines were changed by the government, under the Enterprise Act, which set the term for bankruptcy at one year.

Instead of the previous period of three years that was designed to help entrepreneurs get back on their feet and back in the business world quicker and as far as it being less of an embarrassing situation. This is due to being able to do all of the necessary form filling, on the Internet and not having to face lawyers and accounts.