Bankruptcies soaring
04 August 2006
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New figures reveal Bancruptcy to hit 100'000
The UK's addiction to spending is taking it's toll, as figures showed the number of people going bankrupt is about to hit record levels.
Between April and June, this year, the number of people choosing bankruptcy was 66% higher than this time last year - 26,021 more and it's predicted it'll rise even further.
Much of the bancruptcy boom is blamed on borrowing binges at the beginning of the decade, caused by high consumer confidence in interest rates, employment and house prices. Or because of a change in the law, which means it now only takes one year to go bankrupt, rather than three.
The Enterprise Act was designed to encourage entrepreneurship by removing the stigma of bankruptcy but critics claim it has encouraged more people to run up debts and avoid paying them off by declaring themselves bankrupt.
Experts also forecast that the rise in heating bills and house prices will contribute to the number of bancruptcies continuing to rise.
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