Bankruptcy rises over the past couple Of years

It seems that bankruptcy has become increasingly popular over the past couple of years and HSBC, one of the largest banks in the world, has expressed its concern.

It is certainly no fun to declare yourself bankrupt. It goes on your record and you will find it impossible to get a mortgage for at least ten years. Having a bank account will be hard work too and also your chances of finding a job may be reduced. As well as that, you get named and shamed in the paper for all your family, friends and neighbours to see. No, declaring yourself bankrupt is definitely not an easy option! However, it seems that people are still not put off and the number of people declaring themselves bankrupt has risen dramatically over the past couple of years.

This rise in the amount of people declaring themselves bankrupt is not only damaging them but it is also damaging to the creditors who end up having to write off large amount of debt.

HSBC has said that within the last year it had employed over 1,400 new securities staff but now three quarters of the business has had to be shut down. It is likely that this trend will continue unless something is done to stop people from getting into so much financial trouble that they do have to declare themselves bankrupt.

However, it is not only bankruptcy that is troubling the lenders, it seems that more and more people are turning to individual companies in order to help them out with their debts and that is also causing more and more debt to be written off. The debt crisis is certainly a well known one and it does not seem likely that it will slow down anytime soon. However, with more and more bankruptcies, there could be a chance that lenders start to refuse people who are not financially secure. This will mean that some people will find it harder to find finance if lenders clamp down on them.