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.

Bankruptcy Filings On The Rise: The 411 is a post from: the irs team

bankruptcy filings

If you decide that you would prefer to go ahead with bankruptcy filing there are several matters that you would need to consider. 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.

Even though you have the option of bankruptcy filing by yourself, it is better to consult a lawyer for advice and help. The job of the lawyer is to handle the bankruptcy filing procedures for you. All you will have to do is furnish all your personal information so that your lawyer will be able to put together and also file your petition for you.
On completion of the process of filing your petition, a trustee will be assigned to you. This trustees job is ensure that all tessential documents 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 halt to whatever legal proceeding they have taken up to recover whatever you owe them. Following this you will have meeting with your creditors and their lawyers as well which will be a long drawn out process.

bankruptcy filing

As bunkruptcy filing is no easy task, you must keep in mind that you should be very patient as it can take a lot of time.. You should therefore consider consulting an experienced lawyer to see that things go well.

Bankruptcy Filing is a post from: the irs team