Insolvency figures no surprise, says Citizens Advice
Published On 4 February 2007
Recent insolvency figures have come as no surprise as Britons are still struggling with significant levels of consumer debt, according to Citizens Advice.Responding to the data from debt consultancy Thomas Charles, which revealed that one in five Britons is considering insolvency, Citizens Advice added that bankruptcy accounted for 65,000 of the debt problems it handled in 2005-6.
Commenting on the figures, Sue Edwards, senior debt policy officer at Citizens Advice, said: "Citizens Advice bureaux dealt with 1.4 million debt problems in the last financial year. There are thousands of people who have substantial debt and will never be able to pay it off, which is why there need to be affordable options in place for them.
"For many CAB clients with substantial debts and no available income to pay them, bankruptcy may be the only realistic option."
She added that the bureau was pleased with the government's introduction of Debt Relief Orders – out of court insolvency remedies as it would go some way to alleviating the problem.
Ms Edwards added: "We would urge anyone with serious debt problems to get free, expert, independent advice from a Citizens Advice Bureau or other free and independent advice agency."
