2005-11-11

Money & Stats: Record Rise in Bankruptcies

Official figures this week are expected to show a record rise in bankruptcies from just under 36_000 last year to 46_000 this year. The steep rise is triggered not just by creditors but also by individuals taking advantage of more liberal bankruptcy laws. 'The Financial Mail on Sunday' newspaper says experts also blame the rising bankruptcy rate on an easy availability of credit over the past few years. Changes introduced in 2002 cut the discharge period during which a bankrupt cannot live a normal financial life from three years to one. The newspaper says this has fuelled an explosion of what is known as 'lifestyle' bankruptcies. Those who owe money, especially the young, walk away from their debts by opting to become bankrupt before creditors step in. It says the worst year to date was 1992 when the total of 36_794 was boosted by high unemployment, high interest rates and a housing market crash. 'Record Rise In Bankruptcies', Yahoo! Business News, 2005-11-11, Fr

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