Bankruptcies up in the east of England in Suffolk
Whereas in 1995/6 376 people became bankrupt, 655 people fell victim to debt pressures in 2005/6.
In particular those aged between 18 and 29 emerged as an increasingly vulnerable group, with the percentage of bankrupts coming from the young doubling since the new millennium.
“More young people are going bankrupt because of things like student loans they are also less likely to have assets to lose by going bankrupt,” Frances Walker of the Consumer Credit Counselling Service told the East Anglian Daily Times.
“We often recommend people go for bankruptcy but it really depends on the person and what’s the best option for them.”
Ms Walker suggests that 25 per cent of people with severe debt issues use bankruptcy as a means of dealing with their debt, blaming the trend on an increasingly credit-driven economy.
David Mond, CEO of debt resolution company, ClearDebt commented: “Ex-students may be using bankruptcy to offload their debt but this really is the nuclear option. They should also be aware that going bankrupt will not affect any student loan they have that will still need to be repaid in full.
“Currently student loans are covered by the other major personal insolvency procedure, the IVA, or Individual Voluntary Arrangement, but there are signs that this will not remain the case forever.”
Britain’s debt now exceeds £1 trillion, a significant growth which has prompted legislation in Parliament to protect credit card consumers and highlighted the importance of the effective management of loans, overdrafts and mortgages.
