Bankruptcies 'on increase'

Bankruptcy levels across the UK are set to rise, it has been claimed.

The Consumer Credit Counselling Service (CCCS) believes that as the number of insolvencies increases, individuals are less likely to opt for individual voluntary arrangements and will instead choose to declare themselves bankrupt.

Indeed, over the course of 2008, accountancy firm Grant Thornton believes that every month, approximately 10,000 individuals may become insolvent.

"We're helping people through the whole process, with the paperwork - and, if possible, helping them to apply for trust grants and things like that, so that they can help with the cost of actually declaring oneself bankrupt," said James Ketchell, a representative from the CCCS.

While most instances of bankruptcy are entered into voluntarily by the debtor, creditors may petition for it on an involuntary basis.

In the UK, the term 'bankrupt' specifically relates only to either partnerships or individuals.