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

Q. If I file for bankruptcy will I lose my home?

A. Probably not. But the answer depends on the particular laws in the state where you will be filing for bankruptcy protection. Although Chapter 7 bankruptcy involves the surrender of all assets to a trustee, there are a number of state and federal exemptions that allow bankruptcy debtors to keep their homes. If you don't have any equity in your home, it has no value to a bankruptcy trustee and will not be seized. In Chapter 13 bankruptcy, debtors keep all their property in exchange for a 5-year payment plan distributed to their debtors.

Q. Can I lose my job because I filed for bankruptcy?

A. Absolutely not. Federal laws are on the books that prohibit employees from treating an employee any different from another simply because of a bankruptcy.

Q. Will bankruptcy ruin my credit standing?

A. Probably. Bankruptcy is the worst mark you can have on your credit report and will cause your credit score to take a dive. But most people already had significantly damaged credit before they even filed for bankruptcy. That's because many people are already behind on credit card and mortgage bills when they decide to file bankruptcy. That means their credit rating has already taken a significant hit. The good news is that most people can get a credit almost immediately after bankruptcy and a car loan 6 months to a year later.

Q. Will everyone know I filed for bankruptcy?

A. It depends. Bankruptcy records are available for anyone to view in the local federal courthouse. Some newspapers print the latest bankruptcies in the community on a weekly or month basis. While bankruptcy records are not private, someone must know your name in order to look up your bankruptcy filing. So if you don't mention your bankruptcy to anyone, the chances are very good that no one will know.

Q. Will filing for bankruptcy stop the calls and letters from creditors?

A. Yes. A key section of the bankruptcy law includes an automatic stay that is granted to bankruptcy filers as soon as the bankruptcy petition is filed. Creditors who continue to call after being notified of the bankruptcy should be referred to your lawyer, which will generally stop by all the harassing calls.

Q. Is there a chance my bankruptcy case will not be accepted?

A. Yes, but that is only in the smallest minority of cases. Statistics show that about 70 percent of all individual bankruptcy cases are Chapter 7 filings. While greater scrutiny of Chapter 7 cases has been in place since the 2005 changes to bankruptcy laws, about 90 percent of all Chapter 7 cases are accepted and eventually discharged. Most of the rest are rejected and then refilled as Chapter 13 cases. The only Chapter 13 cases dismissed by the court are those that involve fraud or abuse.

Understanding the answers to these bankruptcy questions can be essential as you decide whether or not to proceed with a bankruptcy case. Only rely on advice from a lawyer trained in the bankruptcy field.

Common Bankruptcy Questions is a post from: the irs team

Puh-lease.

Bankruptcy is akin to personal financial suicide. It destroys one's credit and credit worthiness. It causes more damage than 2 sumo wrestlers going toe to toe in a crystal vase shop. What a sight that would be on the evening news.

Rather than promoting bankruptcy, I would like to make you aware of bankruptcy alternatives. These are debt relief programs that get rid of debt like gangbusters. Credit card debt is what it is – a fact of everyday life. Unless you prefer to keep a stash of dollar bills under your mattress or in a shoe box buried in your backyard, chances are you have a credit card and some amount of credit card debt.

Avoid bankruptcy – this is what we should be trying to do at all costs. So let's discuss here in digital print why. As we mentioned, your credit score – you can kiss it bye bye if you file for bankruptcy. You can also expect the stain of a bankruptcy filing to stay on your credit record longer than a glass of merlot spilled on a white bear rug.

If you have the need to order new home utility service in the future such as gas, electric, water, internet, cable, phone – you can expect to be required to pay hefty deposits in order to get that service.

Thinking about renting an apartment? Think again. You will be denied based on your bankruptcy filing and your pitiful credit score. Folks, your average major league pitcher would have a higher batting average than the credit score of a person who files for bankruptcy.

What did that funk song from the 70's say? … "How Looooow can you go? How Looooow can  you go?" You feel me?

Like there is no WAY your credit score could get any lower.

Debt Relief – it doesn't have to be some John Mellencamp "Hurt So Good" kind of thing. it doesn't have to cause harm to have some minimal benefit.

The true debt relief programs that help without causi ng harm include debt settlement, debt consolidation & debt consolidation loans, as well as consumer credit counseling.

If you or someone you know are struggling with credit card debt, jump online and research these programs. And never, ever get involved with bankruptcy…

or a bankruptcy lawyer for that matter. But that's another story.

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Considering Bankruptcy? No. No. No. is a post from: the irs team

It's during these stressful, emotional times that all of a sudden the TV commercials run by bankruptcy lawyers start resonating with a person. "Get out of debt today!", "Improve your credit score!", "Get rid of all of those bills!", etc. Unfortunately, not is all it seems to be at first with bankruptcy.

In fact, rather than considering bankruptcy, one should in fact be considering ways to avoid bankruptcy. The reasons are as follows: bankruptcy has many troubling aspects to it. It stirs a virtual hornets nest of issues, and causes much, much collateral damage in the process, leaving a trail of financial destruction and ruin in its wake.

So what is the deal with bankruptcy? Well, for starters – it is by no means a simple walk in the park, as the bankruptcy lawyers would lead you to believe. In fact, one could argue that it is fact a rather dangerous walk in the park, say like a walk through Central Park alone at 2am, with shiny gold chains dangling around your neck. It is a minefield, and full of pitfalls.

The person who files for bankruptcy is basically destroying their credit record. It's an implosion, basically. There will be no chance to obtain credit from anyone during this time period because creditors will view the person's credit report as toxic. They wouldn't touch it with a 10-foot cattle prod. And how long does a bankruptcy filing stay on the public record? Up to 10 years in many states. Imagine that.

The person who files for bankruptcy can also expect to pay hefty deposits when they order new utility service in the future – gas, electric, water, cable, phone, etc. And quite possibly they could find themselves passed over for a job, as more and more employers these days are performing credit checks as part of their routine job applicant screening process.

Therefore, it's wiser to consider bankruptcy alternatives rather than bankruptcy itself when faced with mounting financial difficulties.

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Considering Bankruptcy? Don't Go There is a post from: the irs team

In order to stave off filing for bankruptcy, you've got to be capable of stopping it from coming a long way off. The most significant matter that you are able to do to save yourself from being forced to deal with bankruptcy would be to discover ways to make certain that you're protecting your credit while you have it. Be careful with credit cards and loans; be sure to not keep any funds out that you should not keep out. Make all of your payments on time, and pay more than the minimum amount due if at all possible. Remember that this is extremely important because it is going to be the only way that you can find yourself able to prevent bankruptcy when it is just beginning.

There are other things that you can do when you sense that you are getting into financial trouble. If you are finding that you are unable to pay certain bills, you should contact each of the places separately and see what can be worked out to make sure that you are going to be making the payments on time. Most credit card companies and other places have payment plans that you can be a part of, so it is a good idea to check these out. Never be afraid to ask what your options are because the creditors are going to want to get their money from you and if you have to file for bankruptcy that often means that they aren’t going to be getting all of the money that they are owed. If they know that you are trying your best to pay whatever you can, you might be able to find a way to get the debt taken care of and to get back on the track to getting everything paid off. This is something that is worth considering so that you are going to be able to pay back things that are owed to you.

Bankruptcy Prevention is a post from: the irs team