Avoiding Bankruptcy: Is It Worth It?
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The article "Avoiding Bankruptcy: Is It Worth It?" is about bankruptcy, it has been released by Michael Curry.
The stimga of being in debt or going bankrupt seems to be eroding.
This is partly because of the sheer number of people who have experienced debt problems in the UK. It is also because debt is seen as an unavoidable feature of everyday life.According to recent research, the average UK household has debts of £4,092. Furthermore, student debt is right now the norm ratehr than the exception.
A survey carried out by the natinoal consumer debt service revealed interesting findings.It showed that students are worried about the debts they are building up while at university and believe that once you are in debt it is difficult to get out of it. However the majority guess that debt is a normal part of today’s lifestyle and borrowing money for university is a good investment.People are no Longer Desperate to Avoid BankruptcyAs being in debt starts to lose its stigma, so too does bankruptcy.
In recent years the number of people declaring themselevs bankrupt in the UK has soared. In 2003 around 45,000 were made bankrupt in the UK. By the end of 2005, this figure had risen to a staggering 70,000. Of this number well over half had actually chosen to go bankrupt. This shows that bankruptcy is being seen as a debt solution rather than as something that should be avoided.Should We Try and Avoid Bankruptcy? This new approach to banrkuptcy in the UK is really worrying.
This is because many people do not understand the long term negative implications of gonig bankrupt. Bankruptcy carries many serious disadvantages and penalties which means that it really should be avoided if at all possible.For example, if you go bankrupt you can lose your business and professional stauts. Whilst is you run your own company it will be closed down and your employees will be disimssed. In the future you will not be allowed to form, manage or promote a company without the express permission of the court.Bankruptcy should also be avoided because of the persoanl disadvantages it brings.
For instance, it is not uncommon for a perosn to lose their home when they are declared bankrupt. Furthermore it can be practically impossible to obtain credit.How Can You Avoid Bankruptcy?In 1986, the government introduced IVAs as an alternative to bankrupcty.
Unlike with bnakruptcy there is no long term disadvantages or penalties associated with an IVA.An IVA enables people with debts over £15,000 and multiple creditors to repay there debts over a five year period via affordable monthly repayments. These repaymnet amounts can be as low as £200. Often a proportion of the debt is written off altogether and interest on the debt is frozen.Avoiding BankruptcyAlthough bankruptcy appears to be losing some of its stigma, it is still worth avoiding if posisble.
This is because of the serious and long term disadvantages that it carries.An IVA is a government backed alternative to bankruptcy which allows debtors to claer their debts via affordable monthly repayments and without incurring any penalties. As a result setting up an IVA is one of the best ways of avoiding bankruptcy in the UK.Clear Start offers free IVA advice to help you find a legitimate alternative to bankruptcy: Avoid Bankruptcy
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Avoiding Bankruptcy: Is It Worth It?
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