Personal bankruptcy up over 23%

According to Insolvency Service figures, personal bankruptcy rose by 23.4% to just over 19,000 in the first quarter of 2009, compared with the same period in 2008.

The number of individual voluntary agreements (IVAs) also rose 11.8% to nearly 11,000.

Experts are predicting that the number of people going insolvent could rise to over 150,000 before the end of the year.

This includes those making use of the new debt relief orders (DROs).

DROs were introduced in April and enable those with debts of less than £15,000 and limited assets to write off their debts without declaring full bankruptcy.

Declaring bankruptcy though in any form should not be considered an easy way of getting rid of debt.

Insolvency procedures are serious matters and can have significant implications for an individual.

Anyone concerned about the amount of debt they have should seek specialist debt management advice.

With this you can find the best way to deal with your debt problems, whether this be through such as a debt management plan, IVA, consolidation loan or bankruptcy.

Critically take action before the debt gets too out of control.