Bankruptcy

People in England and Wales with low levels of debt will now be able to avoid bankruptcy, which can have a serious impact on future finances, as the Government has increased the minimum level of debt that can force people into this last resort option to £5,000 from £750.

More financially vulnerable people will be able to avoid the most drastic formal debt solution after the Government announced plans to increase the minimum level of debt that can force people into bankruptcy to £5,000 later this year.

The number of people going bankrupt has fallen to a 15-year low in England and Wales, according to official figures published today.

Plans to make people in Scotland who are made bankrupt pay debts for four years rather than three will lead to "increased human misery" for people in financial crisis, debt advice groups are warning.

Bankrupt consumers looking to open a new basic bank account will now only be able to open a Barclays account, after the Co-operative Bank decided to stop offering accounts to undischarged bankrupts.

The "bleak" financial situation faced by the younger generation was laid bare today, as official figures showed that more people aged 25 to 34 are turning to a type of insolvency known as a debt relief order (DRO) than any other age group.