arly Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and t

The prospect of bankruptcy is an ever increasing reality facing many individuals. Figures released recently by the Department of Trade and Industry (DTI) show that bankruptcies and insolvencies have hit an all-time high.

The Figures For 2005:

13,501 people declared bankrupt in UK

6960 adults entered into voluntary insolvency known as Individual Voluntary Agreement

What To Do If You Are Thinking Of Declaring Yourself Bankrupt.

It's better to enter into an IVA than to declare yourself bankrupt. Under an IVA, borrowers agree to pay a fixed monthly amount over an agreed period, subject to approval by three-quarters of their creditors. In return, the interest on their debts is frozen, and some of their debt - in some cases, up to four-fifths (80%) is written off.

What Has Caused This?

Te lending boom which began roughly a dozen years ago led to a rise in credit problems. However, these figures are even higher than those recorded in the recession of the early Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and th

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13,501 people declared bankrupt in UK

6960 adults entered into voluntary insolvency known as Individual Voluntary Agreement

What To Do If You Are Thinking Of Declaring Yourself Bankrupt.

It's better to enter into an IVA than to declare yourself bankrupt. Under an IVA, borrowers agree to pay a fixed monthly amount over an agreed period, subject to approval by three-quarters of their creditors. In return, the interest on their debts is frozen, and some of their debt - in some cases, up to four-fifths (80%) is written off.

What Has Caused This?

Te lending boom which began roughly a dozen years ago led to a rise in credit problems. However, these figures are even higher than those recorded in the recession of the early Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and t

eclare yourself bankrupt. Under an IVA, borrowers agree to pay a fixed monthly amount over an agreed period, subject to approval by three-quarters of their creditors. In return, the interest on their debts is frozen, and some of their debt - in some cases, up to four-fifths (80%) is written off.

What Has Caused This?

Te lending boom which began roughly a dozen years ago led to a rise in credit problems. However, these figures are even higher than those recorded in the recession of the early Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and t

ses, up to four-fifths (80%) is written off.

What Has Caused This?

Te lending boom which began roughly a dozen years ago led to a rise in credit problems. However, these figures are even higher than those recorded in the recession of the early Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and t

arly Nineties. This sounds off a big alarm bell regarding how we manage our finances.

The breadth and depth of our borrowing habit have increased considerably, as relaxed lending standards have led to a rise in both the number of borrowers and the overall amount that individuals can borrow. In short, we have become credit junkies. We live today and pay tomorrow.

Naturally, this borrowing binge creates victims, as over-indebted people struggle to meet rising debt repayments and their finances begin to spiral hopelessly out of control.

What Criteria Is Required For Declaring Myself IVA?

Bankruptcy laws have become more relaxed, with some people now seeing it as an easy option or 'get out' to resolve their problems. It does, however, still impact upon your financial life.

You may be reading this thinking an IVA is your best option, but it only really applies if you are working full time and you owe more than ?7,500 to three or more lenders. It's also expensive to arrange ( you would be looking at costs of around ?6,500 ! ).

Alternatively, you can attempt to tackle the problem yourself by increasing your income, reducing your outgoings, and throwing all your spare cash at your debts.