Bankruptcy at new height

Debt crisis in UK has reached a new record height. Recently raised interest rate pushed mortgage and personal loan repayment instalment high. As a result, record number of bankruptcies have been witnessed in April and June.

London (loans-bazaar) August 7, 2006: Record number of bankruptcies have been witnessed in the month of April and June in the UK. This clearly reveals that debt crisis in UK is growing faster. The highest ever bankruptcy cases have been recorded in England and Wales. 26,021 bankruptcies recorded in England and Wales is much above than 15,465 recorded during the same quarter last year.

In the year 2005, insolvencies in the first three months were 23,351. It was predicted that insolvency figure might reach to a height of 100,000 at the end of the year. These figures have been revealed by Insolvency Service a day after a raise in interest rate and within a week when the major High Street banks reported rising figures of bad debts.

Though analysts blamed the borrowing binges for huge rise in bankruptcies, the change in bankruptcy law in 2004 is also held responsible. This law made it easier to for people to relieve of their debts. This resulted in building up more than trillion pounds of debts through personal loan, mortgages, credit cards etc.

In this connection, it may be mentioned that there are various sort of customised debt consolidation loans in the UK to help people get out of debt crisis and avoid bankruptcy.

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