Monday 7th of September 2009
Vulnerable people are being forced into bankruptcy by councils, a new claim suggests.
A report by the Donal MacIntyre show, on BBC Radio 5 live, found that local authorities in England and Wales called for more than 3,000 individuals to be made bankrupt in 2007-08.
While none of these petitions resulted in bankruptcy, the news resource states that there is concern that vulnerable people who do not understand the process are more likely to be made insolvent.
Speaking to the show, the Local Government Association says that councils have to get bankruptcies authorised by the courts.
"Town halls only take measures such as bankruptcy as an absolute last resort. People struggling to pay bills are given as much leeway as possible," it adds.
Individuals could, however, be struggling with essential payments such as council tax and rent as they battle other financial commitments including unsecured debt.
Recent findings from Credit Action revealed that in the UK, someone is declared bankrupt or insolvent every 3.97 minutes.
By Ashley Littley
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Personal insolvency levels 'remain high'
September 8th, 2009 at 10:00 am
are you sure that none of the 3000 petitions resulted in bankruptcy? I could probably name some just off the top of my head.