Monday 23rd July 2007
Changing attitudes to bankruptcy mean that more people will choose to take out an IVA or go bankrupt, according to an industry expert.
Paul White of Belgravia Insurance Consultants said bankruptcy now held less of a stigma and that the process of becoming insolvent had become "easier" in recent years.
"We're moving towards a more US approach where people say: 'Well that's unlucky' and give you another try," said Mr White.
IVAs or individual voluntary arrangements have also become a more common solution for those facing serious debt problems, in part because they do not have to be done 'face-to-face', said Mr White.
"If it can be done remotely then it's really more of a streamlined process rather than someone sitting down face-to-face.
"There is more of this remote advice going on, so cases like these are being treated more casually," he said.
Figures from the Insolvency Service show that there were 30,075 individual insolvencies in England and Wales during the first quarter of 2007, up 23.9 per cent on the same period in 2006.
Among these, around 16,842 of these were bankruptcies, up ten per cent on 2007.
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UK economy
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