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Bankruptcy And Debts Blog 26 June 2008

26 June 2008

Good work results from inspiration and not legislation

Posted by James Breen at 6/26/2008 10:34:00 PM

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Posting on June 5, 2008 by onlinemortgagesuk The Office of Fair Trading (OFT) has warned consumers to be careful before responding to unsolicited mailings which advise them to cancel existing individual voluntary arrangements (IVAs) and which suggest they opt for an alternative debt management solution such as bankruptcy instead. Some such mailings sent out to consumers misleadingly suggest to recipients they may have been mis-sold the .. Read the rest of this entry.

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Posted at 22:34 0 comments


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People file for bankruptcy because they're in debt. The more debt there is, the more bankruptcies there are. Well, duh! It really is that simple. When compared to the level of borrowing, the rate of bankruptcy has remained fairly steady. In 1977, 74 bankruptcies were filed for every $100 million of consumer debt. In 1997, 73 bankruptcies were filed for every $100 million of consumer debt. Bankruptcy isn't the cause of debt but rather is the result. And it isn't the disease but rather is one of the cures. Restricting access to bankruptcy court won't solve the problem of debt any more than closing the hospitals will cure a plague.