Bankruptcies set to rise in 2011 posted on 3 December 2010 | posted in General Category  | ( 0 ) Comments Bankruptcy could be an option for consumers who are struggling to pay off their debt, especially in 2011 as levels of unemployment are expected to rise. After recent research our debt advisers believe that banks will have to write off plenty of personal debt as more people will have less chance to clear their debt due to unemployment. The only options will be bankruptcy or measures such as an IVA where banks have to accept they’re not going to get all their money back. But IVA's will be seen as a bad option as no monies will be paid to the creditors on average for approx 2 years. There is also now a prediction that many more IVA's will start to fail in early 2011, as people will struggle with the increase in monthly repayments that IVA companies are all set to increase due to the VAT rise. Bankruptcies especially will increase because people now understand the process of how bankruptcy works and they now realise that it is not all doom and gloom. Plus due to the increase in the number of IVA's failing people will be left with the only option of going bankrupt. Following the release of UK debt statistics on December 1st, they clearly show that personal debt is increasing and with job cuts on the way and an increase in interest rates along with a double dip recession, there are tough times ahead for everyone. According to creditaction, the Office for Budget Responsibility (OBR) predicts that household debt will amount to £1,823 billion by the end of 2015. This equates to each household owing on average £72,341. This increase will occur because interest rates on loans are growing, which will make it harder for consumers to pay them off. This can lead to insolvencies and more people will be seeking to enter into a debt solution that helps them get out of debt. We are committed to helping people solve their debt problems and the only way people can do this now is to seek professional, fair and impartial advice from companies like ourselves who have the best interests of the person in debt at heart. Integrity specialises in bankruptcy and has a proven and recommended track record in helping people through bankruptcy.   Share this blog entry: Recommend this blog entry to a friend You can follow other blog entries via the RSS feed. You can also leave your own response. Site administrator reserves the right to reject any replies that are deemed inappropriate.

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