Bankruptcy In Wales Rising

The number of bankruptcies in Wales increased dramatically during 2005, the Western Mail has reported.

Figures from the Department of Constitutional Affairs revealed that the number of voluntary bankruptcies in the country jumped from 1,175 in 2004 to 1,531 last year - a rise of 30 per cent. The number of Individual Voluntary Arrangements (IVAs) also increased by a huge 117 per cent, with 7,002 people taking up the schemes.

The newspaper reported that many of the bankruptcies and IVAs executed came from students. Despite student loans being protected from bankruptcy proceedings, 900 students still filed for them anyway to gain protection from other creditors.

John Bangham, of KPMG Cardiff, said that since Christmas credit helplines had seen an increasing amount of calls, and that 2006 was likely to be another record year for bankruptcies and IVAs.

"The IVA is an increasingly popular way forward for many people in financial difficulty as it offers them an opportunity to face up to their problems, draw a line in the sand and restructure their finances," he said.