Credit report specialist Experian has questioned whether people realise how serious the consequences are for their credit record should they declare themselves bankrupt.

According to recent figures from The Insolvency Service, there were over 15,000 bankruptcies declared in England and Wales in the first quarter of 2006, a 73 per cent year-on-year rise.

“The level of bankruptcy has increased,” said James Jones, Experian’s consumer affairs manager. “We are concerned that people don’t realise their credit report will not be wiped clean after one year.”

Mr Jones noted that despite the fact that a bankruptcy order will still appear on a person’s credit record after six years, a greater proportion of people appeared to be opting for bankruptcy above other forms of debt management, such as a consolidation loan.

By seeking professional advice from an independent financial adviser, people can find out whether a debt consolidation loan is best suited to their own individual situation and explore other alternatives to bankruptcy.

To read more about debt consolidation loans, click here.

© Adfero Ltd