Latest Debt News
Study reveals bankruptcy attitudes
01/02/2006 16:42:00
A study of people who go bankrupt has revealed that most people regard it as an "efficient and humane" process.
Despite bankruptcy being a negative experience, respondents to the Bankruptcy Courts Survey 2005 said that the ordeal was a smooth one due to good communication between the courts and bankruptcy trustees.
The research was conducted by John Tribe, from Kingston University's Centre for Insolvency Law and Policy.
He discovered that one in two people admit that they are unable to properly manage their credit, while others blame divorce, redundancy or illness for the reason they go bankrupt.
Desmond Flynn, inspector general of the Insolvency Service, said: "Too often that debate is conducted on the basis of hard cases and personal anecdote so this research is very welcome and extremely timely.
"The report concludes that very few people see bankruptcy as an easy way out of their debts but rather that they have no real alternative."
Bankrupts were, in the main part, male and non-homeowners, who acknowledged their moral responsibility for the debt they found themselves in.
© Adfero Ltd