Bankruptcy ‘the only option for many’

Neil Munroe, external affairs director for Equifax, states that for many people bankruptcy is the only way out of debt.

His comments follow an Equifax survey stating that 56 per cent of respondents believe that it is not fair for people who declare themselves bankrupt to be discharged within a year.

Mr Munroe commented: “It’s an interesting response.”

He added: “I think that most people have sympathy with those who have got themselves into very serious debt and for which bankruptcy really does seem to be the only option.”

However, Mr Munro continued that a reduction in legislation allowing people to be discharged in a year has hit a “sore point” with people who keep on top of their repayments.

Insolvency is often taken as an alternative to bankruptcy, with CreditExpert urging consumers to think carefully before considering either option.

Research from CreditExpert today showed that many people are unaware of their credit ratings and the effect missed repayments could have on future borrowing.