Bankruptcies rates ‘set to rise’

The rates at which British consumers opt to enter bankruptcy as a form of debt solution will increase considerably over the course of this year, it has been suggested.

In fact, the Consumer Credit Counselling Service (CCCS) is convinced that bankruptcy rates will outstrip the figures for Individual Voluntary Arrangements (IVAs) in 2008.

The council made its position clear after accountancy firm Grant Thornton predicted that 10,000 people per month would enter an IVA in the UK this year, which the CCCS described as a “fair enough assessment”.

“Bankruptcy seems to have a very bad stigma attached to it, and people for that reason do not go through with it,” said James Ketchell, a spokesperson for the CCCS.

“However we view it as a solution, another way of sorting out one’s financial situation,” he added.

Grant Thornton’s recent report also indicated that the early part of this year looks set to be a particularly busy time for IVAs and bankruptcies around the country.