Most people who are in debt are looking desperately for a way to avoid bankruptcy. They scramble to create new budgets, ways to spend less and make their pennies stretch further. Much to the dismay of countless consumers, it’s a relatively simple process to get into debt, but not so easy to get out of. Buy now, pay later has been the source of many consumers financial destruction. What you purchase on credit today, may look affordable in your budget, it may even BE affordable at the moment. The problem is that things change very quickly in the wide world of finance and with the economy shrinking the way that is has been in recent months, what you could afford comfortably 3 years ago is no longer affordable today. F
Aug
29
The recession has done little to reduce consumer spending and personal debt, according to one survey which claims that more than £24bn of unsecured debt has been amassed during the economic downturn.
Comparison service uSwitch has claimed that “shopaholics” have been largely undeterred by the recession, with women amassing more than £13bn of personal debt compared to £10bn for men.
The website defines a recession shopaholic as someone who has built up more than half of their unsecured debt through fashion purchases – and while there are more female than male shopping addicts – about 4 million and 3 million respectively – men acquire a higher average personal debt of £3,425 compared with £3,353 for women.
Anne R
Aug
27
Bankruptcy chapters are procedure for individual, partnership firms, companies or bankruptcy to file bankruptcy. There three important chapters in UK for bankruptcy:
Bankruptcy chapter 7 – bankruptcy chapters 7 has been introduced for individual especially. It contains the complete liquidation property and assets of debtor. Court sells the expensive assets of debtor to recover the amount of creditors. After selling the property, amount is distributed to creditors as per debts or pro-rata basis by court.
Bankruptcy chapter 11 – This chapter is used by companies or organization to file bankruptcy. This option is not for individual at all. It
Aug
24
The coalition government’s first budget will hit the poor the hardest, according to a report by the Institute for Fiscal Studies (IFS).
The IFS claimed that proposed benefit cuts, such as cuts in tax credits, housing benefits and disability allowance, will hit those on lower incomes the hardest, taking a greater proportion of their total income, with the analysis suggesting that the poorest families will be hit to the tune of £422 between the Budget and April 2014.
This means that only the richest 10% of households lost more in cash terms from the Budget, than those in the bottom 60%.
The report also questioned the government’s decision to use the Consumer Prices Index (CPI) instead of the Retail Prices Index (RPI) when calculating certain benefits, given that CPI does not take into account increases in housing costs.
The report said: “Low-income households of working age lose the most as a proportion of income from the tax and benefit reforms announced in the emergency Budget.
“Those who lose the least are households of working age without children in the upper half of the income distribution.
“They do not lose out from cuts in welfare spending, and they are the biggest beneficiaries from the increase in the income tax personal allowance.”
The Treasury said it did not accept the “selective” findings of the IFS.
Aug
24
Bankruptcy can be filed by anyone like individual, organization, company, partnership firm etc. Personal bankruptcy is filed by individual only, and government of United Kingdom introduced few important chapters through which you can apply for it for example, bankruptcy chapter 7, chapter 11 and chapter 13. There are few myths associated with personal bankruptcy which we would like to share:
Bankruptcy filing – Bankruptcy can be filed by any UK citizen individually without any problem. It is a right of every individual who are no longer able to repay the debts.
Embarrassment – Personal bankruptcy is no longer a matter of embarrassment. It
Aug
23
Bankruptcies were up 32% across the nation in 2009, leaving no doubt that the embers of the recession are still burning and small businesses are at risk from unpaid invoices. In fact, it may be argued that the collective financial health of its customers forms the foundation by which a small company is protected from – or made vulnerable to – financial disaster.
Generally, goods sold on a line of credit become a security for the creditor. In other words, if a mechanic declares bankruptcy, the tire supplier has rights to the unpaid tires setting on the shelves. What happens, though, if the goods in question are lost to a manufacturing process or, in some other way, are unrecoverable? Full Article…