Tuesday 28th of July 2009
An accountant has spoken out about how she feels bankruptcy is her only option.
Speaking to You magazine, a Daily Mail supplement, Sarah Sutton said that before she was made redundant, she could comfortably meet her mortgage repayments.
When she decided to have another child with her then-partner, Ms Sutton took out a loan so she could take six months off work to spend with her children.
However, Ms Sutton was made redundant and she found herself unable to meet her mortgage and loan repayments. Her home was soon repossessed.
While individual voluntary arrangement (IVA) help may be of assistance to people with high levels of unsecured debt, Ms Sutton told the publication that her next step is to declare herself bankrupt.
"But although that would wipe my debts, it would present a new set of problems. We could stay in this house, but I wouldn’t be allowed to practise as an accountant any more," Ms Sutton said.
Individuals concerned about redundancy may find that their unsecured debt, such as loans and credit cards, could be paid off through an IVA, avoiding the need for bankruptcy.
As Ms Sutton noted, declaring herself bankrupt would cost hundreds of pounds, an amount she is currently struggling to find.
By Neil Burton
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Debt advice 'better than taking out new loans'
