Thursday 4th of November 2010
Individuals who are deep in debt may take the step to ask individual voluntary arrangement questions now in order to provide financial security down the line.
Speaking to the BBC, partner at Deloitte Louise Brittain said: "Do not live with the burden of debt, do not wait until the bailiffs arrive, and deal with debt early."
She stated people facing bankruptcy for failing to pay tax are given plenty of warning by their creditors.
A period of at least three months is allowed from an individual being told they will be taken to court before the final date of bankruptcy is declared, but most cases take up to nine months and possibly a year, she noted.
Earlier this week, statistics published by Credit Action revealed the total level of personal debt in the UK stands at £1,455 billion.
That figure represents a rise of 0.8 per cent in money owed by individuals over the last 12 months and amounts to more than the UK produces in a year.
By Mark Waterman
- 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
- Bankruptcy for the younger generations
