Bankruptcy could be the right answer for some borrowers
September 20, 2007
The level of consumer debt and bad debt in the UK continues to rise, and many consumers have found themselves in huge levels of debt, which for some will prove impossible to pay off.
A recent report has suggested that for those that have little or no hope of every repaying their debts bankruptcy could prove an effective option, despite the stigma and repercussions associated with this course of action. The statement was made by a debt charity in the UK, Credit Action.
According to officials from the charity bankruptcy could provide some consumers – those that are deeply in debt and are unlikely to be able to pull themselves out of this debt – with a clean slate and the chances to start afresh. Bankruptcy is usually seen as a last resort for those in debt, and Credit Action officials have been quick top point out that the effects of this course of action can hit hard, and bankruptcy should never be taken lightly. However, neither should it be ruled out altogether for consumers that could actually benefit from it.
One official from the charity stated: “Bankruptcy is really the option of last resort, but for some people it is the right thing to do if they’re never going to be able to pay their debts back.”
However, consumers are being urged to also remember that bankruptcy action can affect their ability to get credit and other areas of their lives for many years to come, and is certainly not a decision that should be taken lightly or by those that can get themselves out of debt using another solution.
Anyone that is struggling with their debts is advised to contact a fee free debt management agency, debt charity, or the Citizen’s Advice Bureau, where a number of potentially effective solutions can be looked into.
Alan Wright
19th September 2007
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