Effects of bankruptcy means it’s not the easy way out

Experian, the credit monitoring company, has reiterated the impact that being declared bankrupt can have on a person or family, something that needs to be remembered as the numbers using this route grows.

“Lenders are increasingly charging higher rates for people who have been bankrupt,” said James Jones, consumer affairs manager at Experian.

“Also, even when you’ve been discharged from bankruptcy, lenders can still see it on your credit report. Landlords, for example, can see it as well and it may be difficult to get a flat. It might also be difficult to get the job you want, especially in the financial industry.”

Last year, 86 per cent more people declared themselves bankrupt, according to the government figures, with the Insolvency Service noting that the number of IVAs also experienced sizeable growth with a 151 per cent increase.

With total consumer debt figures currently topping the £1 trillion mark, the trend could continue in the near future, despite the best efforts of experts like Mr Jones.