Donal Bannon says those in danger of bankruptcy should not sit in silence

RECENTLY, it’s been hard to ignore the vast amount of media coverage regarding the 134,000 people in England and Wales who became bankrupt or took out an IVA (Individual Voluntary Arrangement (IVA) in 2009.

The record numbers, which also revealed company failures soared to their highest level for 16 years, proved that the recession hit us hard and it deserved its title as the worst of its kind in over three decades.

Unfortunately, there is no end to such bad news, as figures like these look set to rise with many insolvency specialists calling last year “just the tip of the iceberg”.

But rather than looking at the negatives, which is far too easy to do, I think that people in these sorts of predicaments need to know that there is help and advice out there.

For instance, after specialising in insolvency for the past 20 years, I still believe there is still too much confusion surrounding insolvency and bankruptcy, with many clients continuing to confuse the two by thinking they are the same thing.

Taking advice early on improves the chance of finding a solution to financial woes or at least providing a plan to work through the problem.

Those in trouble should not sit in silence and hope for the best. It rarely works.

DONAL BANNON is a partner at Morecrofts. He is also a Fellow of the Insolvency Lawyers Association.