Festive season bankruptcies to soar
Christmas shopping sprees by already debt-laden retailers will see personal bankruptcies soar between now and the end of January, Grant Thornton has warned.
As many as 4,000 people are expected to go bankrupt during this period, with personal insolvencies set to reach record levels in the early part of 2004.
Mike Gerrard, a personal insolvency expert at Grant Thornton said: ‘For many, Christmas shopping sprees will have a sting in the tail when credit card bills hit doormats in January.
‘However, whilst a little overspend will not break the bank for most, an increasing number of individuals that are already financially overstretched are at risk of plunging further into the spiral of debt which may lead to their bankruptcy.’
In addition more bankrupts are at risk from losing their homes. Under measures introduced under the Enterprise Act which come into force in 2004, bankrupts will have a three-year limit to sell their property, and this rule will also apply to old cases dating as far back as 1990.