Bankruptcy cases on the rise
The number of people in Wigan declaring themselves bankrupt rose sharply over the last year.
Figures released today by the Ministry of Justice reveal that 330 people in the borough filed for insolvency in 2007, which was an increase of 15% from the 2006 figure, the greatest rise in Greater Manchester.
Across the whole of Greater Manchester, a total of 2,293 people declared themselves bankrupt last year, although the number of insolvencies across the region fell by 17 per cent in the final quarter of 2007.
This trend did not include Wigan however, which saw an increase of nine per cent in the final quarter.
Now financial experts have warned that, despite this general improvement, the long-term outlook look bleak.
Paul Bateman, of auditors KPMG, said anyone in financial difficulties should seek advice as soon as possible and act upon it.
Mr Bateman said: "If people struggling with debt lose their home they often give up and either go bankrupt or enter into Individual Voluntary Arrangements.
"The continued pressures from council tax, energy and other household bills threaten to push those already struggling over the edge.
"While many will have to take formal steps to deal with their debts, numerous others may be able to take advantage of informal arrangements and tighter budgeting to avoid the worst effects of over indebtedness."
Welcome Credit Union provides financial services for anyone who lives or works in Wigan Borough and offers personal savings advice and low cost, and if necessary small amount, loans.
Unlike with banks and building societies it is possible to hold a credit union account when you are bankrupt and a union will help you to pay off any debt you may have.
Albert Schanzl, a director of Welcome Credit Union, said: "We have a little bit of an increase in people declaring themselves bankrupt and there are two of our members that declared bankruptcy recently.
"But even if make yourself bankrupt you can still have a credit union account and you can still take out a small loan of about 500 to help pay your county court judgements.
"Loans are offered in different amounts depending on your circumstances and each case is treated individually.
"We support people through bankruptcy when they have nowhere else to turn."
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Thursday 09 February 2012
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