Wednesday 8th of July 2009
A 22-year-old woman has spoken about how bankruptcy is the only option she thinks she can take in order to escape her debts.
Speaking to the Mirror, Joanna Dillon said she is struggling to meet mortgage and unsecured loan repayments since her and her boyfriend split up.
Three years ago, she bought a house with her then-boyfriend with a mortgage which she believed to be a 110 per cent one.
However, Ms Dillon found out that it was a 95 per cent mortgage, with the rest of the finance coming from an unsecured loan.
Rather than go bankrupt, borrowers in a similar position could find that an individual voluntary arrangement (IVA) is a more private arrangement and may not have the stigma attached to it that declaring bankruptcy could have.
"It seems the only way out is to walk away, allow the building society to repossess the house and declare myself bankrupt. I really don’t want to go bankrupt, but I can’t see any other way out," Ms Dillon told the newspaper.
After examining Insolvency Service figures, accountancy firm Wilkins Kennedy found that 55 per cent of those aged under 24 who have been made bankrupt are female.
