Piggy's thoughts on Bankruptcy

My after thoughts of bankruptcy paint a picture of two halves. On one side there is fire and on the other side there is water. Yes, bankruptcy serves its purpose and releases you from those debts you cannot afford to repay. However, contrasting this are the consequences of bankruptcy, which can be extremely damaging.

In my experience the two sides do amalgamate and the smoke does disappear leaving a new house to be built. With it comes some wisdom and a lesson in life.

For some bankruptcy is the only option but whoever we are and whatever our financial position is it's important to realise that the best way to resolve debt problems is by seeking advice. In my opinion the earlier advice is sought, the lesser the damage caused and the greater the probability that bankruptcy can be avoided.

Within the UK I believe there are three main contributors to the debt problem and increased number of bankruptcies.

• The individual


• The Government


• The lenders

As individuals we certainly have to take responsibility for our actions. After all, nobody forces us to take credit. Yet I also think it is fair to say that the government has not actioned much in the past to educate us in financial management. This has then given the lenders the opportunity to take advantage and debt us to the maximum. The government has also played a role here as a weak regulatory framework existed within the unsecured credit industry allowing the debt culture to run away with itself.

Moving forward I believe the government has recognised that education is required and has since launched the National Strategy for Financial Capability. The purpose of this strategy is to improve the financial capability of people at different stages of their lives. Regulation of the industry is also improving.

The arrival of the Enterprise Act 2002 has also served to modernise the insolvency regime and help promote entrepreneurship within the UK. Whilst persons who have been bankrupt because of honest failure will be discharged sooner, those who have been dishonest or are somewhat to blame for their position will have the restrictions of bankruptcy prolonged.

There is no questioning that there is a debt problem in the UK. The only question is how much damage will be caused. As it stands today:

• Insolvencies are on the increase


• Repossessions are up


• Inflation is up


• Interest rates have increased


• Unemployment is on the up


• Surely house prices are reaching a peak

If these economic factors continue in the same direction and there was a recession what will be the impact? Given the current levels of debt that exist it's an interesting thought!

Piggy's Support

You may also like to view my bankruptcy website.

If you have any questions regarding my experience then please feel free to E-Mail me.