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Stigma of bankruptcy 'has diminished'

The social stigma surrounding bankruptcy has diminished in recent years, according to a financial advice firm.

Freeivaadvice.co.uk stated that while the relaxation of bankruptcy laws has contributed to the increase in the number of bankruptcies, changing attitudes have also played a part.

Philip Beck, spokesperson for the firm, said that whereas bankruptcy used to be something that people did want to get involved in, that has now changed.

He continued: "I also think the more people who actually commit to bankruptcy will report back to friends and colleagues who may be in debt and relay that the experience wasn't all that traumatic."

Mr Beck added that this could persuade people who are friends with debtors that going bankrupt is the best option.

This echoes recent comments from the Finance and Leasing Association, which said that being in debt has become a way of life for many people in the UK.

The consumer group advised that people who are taking out personal loans to pay off debts to consider what they are letting themselves in for and to ask whether they can afford to pay it off.

Click here to see how much you could borrow with a Lombard Direct personal loan.

03/04/2007 14:45:41

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