Bankruptcy Archive
Posted on May 22nd, 2008 in Bankruptcy.
Statistics suggest that there has been a 77 per cent increase in the number of people filing for bankruptcy in Sunderland.
According to accounting company KPMG, there were 172 debtor bankruptcies recorded in the first three months of this year, up from 97 logged between October and December of 2007.
Wearside also saw the highest jump of any area in the north-east, while Newcastle had the second highest figures, with a 31 per cent increase recorded.
Paul Bateman, KPMG’s head of personal insolvency in the north of England, said: "Consumers are seeing the cost of their mortgages increase, fuel costs continue to go up and now food prices are rising in a manner not seen for years."
He added that for those struggling with debt, seeking professional advice should be the first port of call, the Sunderland Echo reports.
Elsewhere, the Financial Times has noted that recent statistics have suggested that a growing number of people are turning to individual voluntary arrangements (IVAs) via online portals.
Posted on May 19th, 2008 in Bankruptcy.
Bankruptcy rates in the north-east hit the highest levels in the UK in the first part of this year, according to figures released by the marketing analyst firm KPMG.
The number of people being declared bankrupt in the region grew by 34 per cent between January and March this year.
Nationally, bankruptcy rates rose by 11 per cent over this period in comparison to the previous quarter, with individuals petitioning for their bankruptcy rather than being forced into it by creditors rising from 544 cases in the last quarter of 2007 to 731 cases in the first quarter of 2008.
Paul Bateman, KPMG’s head of personal insolvency in the north of England, said: "Consumers are seeing the cost of their mortgages increase, fuel costs continue to go up and now food prices are rising in a manner not seen for years."
David Kuo, head of personal finance for the Motley Fool, has urged consumers to take into account their current fiscal situation and to re-evaluate their lifestyle choices in what is a financially testing period for everyone in the UK.
Posted on March 31st, 2008 in Bankruptcy.
The former owners of a hotel in the north-east of England had almost £1.2 million in debts outstanding when they were finally declared bankrupt, according to reports.
Despite only running Skinburness Hotel in Silloth for a year, Adrian Moore and his wife Vanessa Taron Moore managed to accumulate almost £40,000 in credit card debt, £350,000 in mortgage arrears and £77,000 to other creditors.
The details of the couple’s finances were revealed during their bankruptcy court case the hotel, which was first established in the 19th century, was repossessed by the Abbey National Bank, reports the Cumberland News.
"Running the hotel was to be our dream project but it turned into a nightmare for us," said Mrs Moore.
Financial problems relating to the property were contributed to considerably by the loss of tourism trade during winter months and the costs of renovations that had to be made under the terms of fire safety regulations.
A report from the accountancy firm KPMG in December of last year predicted that this year would see a record number of people around the country enter insolvency such as bankruptcy.
Posted on February 4th, 2008 in Bankruptcy.
Bankruptcies in Wales have doubled in the past six years, as well as an increase in debt counselling queries, reports the BBC.
Those facing problems with debt in Wales can seek help from the Welsh Centre for Credit Counselling, a service which dealt with 6,000 inquiries in 2007.
Dr Brian Gibbons, Wales’ social justice minister, explained to the BBC what action was being taken by the government and the importance of seeking debt help from a legitimate source.
"We are taking action with the UK government on rogue lenders and people who are operating outside the system, loan sharks and so forth," said Dr Gibbons.
Citizens Advice has reported a 30 per cent increase in the numbers seeking information on bankruptcy.
Figures released by uSwitch.com shows that 4.8 million UK adults spend more than they earn, resulting in debt and a 33 per cent increase in bankruptcies from 1992, highlighting the importance of seeking debt advice and assistance.
Posted on January 4th, 2008 in Bankruptcy.
Record numbers of Scots were declared bankrupt last year as the effects of the global credit crunch hit, it has been reported.
Accountancy firm PKF analysed figures and revealed that nearly 14,000 people in Scotland became bankrupt – four times the number becoming insolvent ten years ago.
Bryan Jackson, corporate recovery partner at PKF, said the full effects of the credit crunch will not be understood for some time as those who became bankrupt in 2007 are likely to be people who began having trouble in 2005-06.
"What these figures show is that indebtedness in Scotland is continuing to increase at a historically high rate," he warned.
According to financial advice charity Credit Action, across the UK, 305 people will be declared insolvent or bankrupt today.
It warns that Britain’s personal debt levels increase by £1 million every four minutes, meaning a further £335 million will be borrowed by consumers in one day alone.
