View more on these topics

Personal bankruptcies rocket

Personal bankruptcies in England and Wales have leapt by 75 per cent to their highest levels in three years, according to credit-rating agency Experian.

It says there were 480 new bankruptcies in June 2005 compared with 275 in the same month in 2003.

This increase brings the total in the first half of this year to 2,496 – 513 more than in the same period in 2004 and 906 higher than in 2003.

As well as the impact on individuals’ credit scores, people declaring themselves bankrupt are also forbidden from being elected in council elections, standing for Par- liament and managing a limited company.

Experian says more than 5,000 people have gone bankrupt since the Enterprise Act came into force in April last year, cutting the average length of time until discharge from bankruptcy from three years to one year.

Director of consumer affairs Jill Stevens says: “Although, for some, bankruptcy is the best solution, it is important that people do not see it as the easy option to rid themselves of their debts. Bankruptcy has some very serious repercussions that will affect the debtor for many years after they have seen their bankruptcy order discharged.

“People really have to consider bankruptcy as a last resort. I would strongly urge them to ask for help as soon as they can and not to let the situation get worse.”

Recommended

‘Beware trap of higher tax-free cash’

Tax-free cash lump sums should not be the automatic choice of workers in final-salary schemes, says Standard Life’s John Lawson. Scheme members risk slashing their pension income because commutation rates, which determine how much cash they get for each pound of pension given up, have not moved to reflect falling annuity rates. The problem is […]

Aviva makes over 300 support jobs redundant

Aviva is making 330 staff redundant from the Morcambe and Darlington RAC call centres.The Morecambe site, dealing with insurance sales and customer service, will close in November creating 120 job losses.Darlington, dealing with insurance customer service, will shut down by April 2006, losing 210 jobs. The workload of both closed sites will pass to call […]

Brief encounter

James Salmon follows the progress of Aifa’s Stakes in the Ground initiative to protect IFAs against retrospective regulatory action

Wilson moves into marketing role at New Star

New Star has appointed Richard Wilson as UK retail marketing director, following the recent appointment of Phil Wagstaff as managing director of retail sales and marketing who starts on September 7th. Wilson has been with New Star since 2003 as director of investor communications.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment