A record number of people were declared insolvent last year as the recession pushed many homeowners and businesses into the red, new figures revealed today. Across England and Wales, 134,142 people went bankrupt, took out an Individual Voluntary Arrangement or Debt Relief Order in 2009, the Insolvency Service said. This dwarfs the previous record of 107,288 personal insolvencies from 2006. Experts believe this had already been passed by October last year.

Total company liquidations reached 19,077 during 2009, the highest figure since 1993. But the number for companies in the final quarter of the year was lower than both the previous three months and the same quarter of 2008. In contrast, the level of individuals declared insolvent continued to speed up in the last quarter at 35,574 – the highest since records began in 1960.This is a 25 per cent rise on the figure for 2008 and the eight consecutive quarter where the tally has increased.

A breakdown of the total number of insolvencies for the final three months of 2009 showed 17,007 people went bankrupt, 7 per cent fewer than in the previous quarter. But a record 13,219 people took out Individual Voluntary Arrangements, under which interest on debt is frozen in exchange for a set amount being repaid each month. It is thought IVA numbers were boosted by companies cutting staff pay and overtime as an alternative to making redundancies, meaning people were in a position to repay some of what they owed, rather then being forced to declare themselves bankrupt.

There was also a further increase in the number of Debt Relief Orders taken out in the three months to the end of December, with these rising to 5,348, up from 4,505 in the previous quarter. Both chapter 7 bankruptcy and chapter 13 bankruptcy therefore continue to rise.

As consumers across the land continue to struggle, we continue to look for signs that an economic recover is at hand, budding, and springing forth.

When you are faced with overwhelming debts that you are unable to cover, sometimes the only option you may have is to apply and go for bankruptcy filing. Bankruptcy filing is a legal procedure that many people do not have much information about so it is best that you either consult a lawyer or read up on the details and educate yourself.
If you decide to go for bankruptcy filing there are a few things that you should keep in mind. To start off with you should be able to make well informed choices. Do some research about the choices available to you. Read up on legal proceedings of bankruptcy filing or consider seeking the advice of a lawyer. Whatever method you choose keep in mind that knowledge is power so the more you know and understand the better.

bankruptcy filings

If you choose that you would prefer to go ahead with bankruptcy filing on your own then you will have some decisions to make. When you want to go ahead with bankruptcy filing you will have to choose which type of bankruptcy you are going to declare, whether it is Chapter 7 or Chapter 13.

It is best that you consult a lawyer should you decide to file bankruptcy by yourself. The lawyer will take of the bankruptcy filing for you so that you will not have to get too involved in this delicate and complicated procedure. All you will have to do is provide all your personal information so that your lawyer will be able to put together and also file your petition for you.
On culmination of the process of filing your petition, you will be assigned a trustee. This trustees job is ensure that all the documents required have been submitted and also to verify that the information you have given is accurate and correct.

filing for bankruptcy

Notifying your creditors that you have filed for bankruptcy is the next step on the cards. This will put a stop to whatever legal action they have taken up to recover the debt. Following this you will have meeting with your creditors and their lawyers as well which will be a long drawn out process.

bankruptcy filing

The most important thing to keep in mind if you decide to go ahead with bankruptcy filing is that it is a long procedure which will take a lot of your time and require a great deal of patience. You should therefore think about consulting an experienced lawyer to see that things go well.