Thursday 31st of December 2009
Bankruptcies have risen by 30 per cent in a year in one area of Wales, a newspaper reports, although an individual voluntary arrangement (IVA) could allow people in serious debt to avoid such court action.
In the county of Denbighshire, 363 bankruptcies have been recorded this year and small businesses and pubs have been hit particularly hard by the recession, the Denbighshire Free Press states.
People who own businesses may be keen to avoid going bankrupt. Not only can this mean their main source of income is taken away, but being declared bankrupt can result in individuals being unable to hold a directorship role.
Although an IVA can also have serious consequences - such as a mark against a person’s credit rating - people need not lose their home or businesses as long as they keep up with the new and reduced monthly repayments.
IVAs are also more of a private matter, unlike bankruptcies which are often reported in the local newspaper.
The publication lists a number of restaurant and pub owners who have gone bankrupt this year.
In Wales last year, there were 2,276 IVA applications and the number of quesions on IVAs has increased, the newspaper notes.
By Hayley Jones
- 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
- IVAs can help those with "a reasonable level of income"
