The “B” word – Bankruptcy

Bankruptcy has always been a touchy subject, and one many people avoid.

Bankruptcy has always been a touchy subject, and one many people avoid.  In fact, even I have been caught out on occasion, unintentionally offending someone who might have gone through bankruptcy and take offence when I’m commenting on how hard people in IVAs and DMPs work, to repay their creditors as best they can.

Debt is a heavy word, and with such weight comes an even heavier burden.  At the end of the day, every situation is different and if a DMP, IVA or even a DRO isn’t suitable, then bankruptcy may be the only option one can go for.  And, no matter what some may think…whatever debt solution you choose, including bankruptcy, it is done so with great strain, stress and sadness.

What’s worrying though is that news released in November 2009, confirmed personal insolvency figures to be a record 35,242 in the third quarter of this year.  52% of these were bankruptcies and 35% IVAs.

With such high statistics coming out, although bankruptcy is an option, IPs are encouraging people to re-consider their options before opting for this particular solution.  In such a judgemental society, an IVA, DMP and DRO will always be the more preferred and respected options and it’s important that people look closely at the advantages and dis-advantages of each solution before making that final decision.

So – this time, rather than causing any offence, I open the floor here to you – let us know which debt solution you’ve opted for – and what you thought of the other options available to you.  Why did you go for one and not the others?  IVA, DMP, DRO or Bankruptcy – what was the underlying factor which made you make the choice you have and in hindsight, do you believe you made the right one?  Now..over to you.

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