Bankruptcies ‘to rise sharply’
The number of people going bankrupt is set to rise sharply, according to a report by the Department of Trade and Industry (DTI).
The DTI estimates that the number of insolvencies would double by March 2009 to 28,000 a quarter if the current rates of increase are maintained. This is on the back of a record 26,000 declared bankruptcies in the second quarter of 2006.
“The situation is growing critical, especially in the light of recent interest rate rises,” said financial expert Martin Cunningham. “At the moment, 1.5 million people are failing to make credit card payments and loan instalments on time and that looks set to get worse.
“The Government must look critically at this situation and make provisions for the increasing numbers of bankrupts in our society.”