Personal bankruptcies to soar by 2009
Government report predicts massive rise
The Department of Trade and Industry has forecast that the number of
bankruptcies will rise dramatically over the next three years to reach 28,000 a
quarter by March 2009.
It also warned that the problem would get even worse if there was a
recession, but denied the introduction of new laws like the Enterprise Act,
which make it possible to exit bankruptcy after just one year rather than three,
has encouraged more people to declare themselves insolvent.
Most prospective bankrupts, the report claimed, are not aware of the changes
to bankruptcy laws brought in by Act.