People facing unmanageable debts can now apply for bankruptcy online, rather than in court - leading to more individuals choosing to do so.

A perceived stigma of court proceedings had been a barrier to some bankruptcy, the Insolvency Service said. A rule change in April, and cut in cost, has led to more people making themselves bankrupt. Individuals declaring themselves bankrupt rose 7% in the third quarter of 2016 compared with a year earlier. Creditors, who are owed money, can also apply to make somebody bankrupt. Owing to fewer of these type of applications, bankruptcy totals in England and Wales were 1.5% lower than a year earlier over the same period.

Bankruptcy and alternatives

Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets, including your house, to pay something to the creditors. Since April, applications can be made online and considered by an adjudicator. Costs £655 Individual Voluntary Arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less chance of losing your home, but involves paying some of your debts in one go Debt Relief Orders: Introduced in April 2009, these allow people with debts of less than £15,000 (£20,000 since October 2015) and minimal assets to write off debts without a full-blown bankruptcy.....Source: Read more HERE