Bankruptcy! Scary, as the name makes it sound! What about its impacts in reality? Have you ever found yourself in such a situation or seen someone else face it? Bankruptcy, a situation in which a person is not able to repay back his or her loan in a stipulated time frame or any more. It’s so tough to get yourself involved in such a mess, bearing in mind that there are stringent implications that come with suffering such a state.
For young people in North West, the problem is sadly becoming worse and requires a greater attention. An overwhelming number of the youths are being declared bankrupt at a very young age with the ones mostly residing in Seon ranked at a greater risk of becoming bankrupt. A new research provided information showing that about 3,141 residents were announced to be bankrupt.
However, they opted for going for a debt relief order to lengthen the time for repaying their loans while others decided to take a voluntary individual arrangement with creditors to put them in place of controlling their debts. When this happens with companies you imagine they will go to trusted insolvency practitioners Manchester if not those in Liverpool, but what about the impact on individuals.
According to this data, a total of 142 persons were 25 years of age and below. From this number, 42 were residents of Liverpool and 40 were residents of Wirral. The remaining persons 35, 17, and 12 in number came from Sefton, St Helen and Knowsley respectively. This is quite a substantial number of bankrupt people. Considering the population in Liverpool, 4 youths were declared to be un able to pay their debts which is a large number. Nevertheless, 92 people agreed to individual voluntary arrangement to manage their debts while 46 people took a debt relief order.
In the year 2017, a large number of people in Sefton were declared bankrupt among all mature persons age groups. During this year, at least one out of 322 adults became bankrupt in Borough. Likewise in St Helen, an individual also was declared bankrupt among 336 persons. Also out of 347 individuals, one person became insolvent in Wirral and one both in Knowsley and Liverpool within a group of 358 and 357 persons respectively.
Research shows that the mean number of bankruptcy both in Wales and England was one person per 469 persons. However, Stoke registered a large number of individuals who were bankrupt with a rate of one individual for every 223 adult people who were residents of this city. There were some other parts in London that registered lowest rate of insolvency like Kingston, Thames which had a rate of one to 1111 adult people which is somehow encouraging.
There is a need to look into the issues leading to insolvency as it manifests itself as becoming a major problem in this region. There are various options that can be taken to tackle this issue. An individual can be declared bankrupt in order to calm down pressures from the creditors to give him or her more time to be able to pay the debts. Legal actions meant to file charges against a debtor could also be hindered. An individual voluntary arrangement can be an option which involves agreeing on personal terms and setting a date for the repayment of the loan