Press Release

BEFORE YOU DECLARE YOURSELF BANKRUPT - MAKE SURE YOU KNOW THE CONSEQUENCES

Equifax warns about the long-term impact of bankruptcy

www.equifax.co.uk

A recent report has shown that many consumers opted for bankruptcy last year without being recommended to do so by creditors or other industry officials. Whilst in some cases this might seem to be the only option when facing serious and mounting debts, leading instant online credit information provider, Equifax, is warning that individuals need to be aware of the long-term implications, not just in terms of getting new credit but for job and career prospects.

"For some individuals it may seem that bankruptcy is the only way to get out of debts hanging over them" confirmed Neil Munroe, External Affairs Director. "But we are concerned about recent Government figures which show that thousands of people actually decided to opt for bankruptcy last year in a bid to try to escape their debts. Over the course of 2007 approximately 53,000 consumers are thought to have filed for bankruptcy without being advised to do this.

"For these individuals there may have been other options to tackle spiralling debts, such as debt management plans. It's important to consider these other options, because if an individual is declared bankrupt this fact will stay on their credit file for 6 years seriously affecting their ability to get credit"

Whilst a bankruptcy could be discharged after a year, many people do not realise that it will remain on their credit file for six years. In addition to that, lenders use this information to assess an individual's credit application and bankruptcy could result in them either being declined or paying a premium. A number of job options also do not allow bankrupts, including most aspects of financial services and the legal profession.

"We would strongly advise that individuals take good advice before declaring themselves bankrupt" confirmed Neil Munroe. "As part of this process, they should review the full picture of all their financial commitments including obtaining a copy of their credit report. They need to realise bankruptcy may not be the best option."

Consumers can apply for a copy of their £2 Credit Report via www.equifax.co.uk or by post from Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US. To obtain a copy of their credit report online for £11.95 they should go to www.equifax.co.uk.