Credit rating and loans expert Experian has warned consumers about the dangers of bankruptcy amid fears that more people view it as an 'easy option'.
Bankruptcy proceedings can last from anywhere between 12 months and two or three years and the fact that you have declared insolvency remains on your credit report for at least six years, and can last for anything up to 15 years.
An insolvency declaration can seriously affect your ability to apply for a loan and even interrupt tenancy agreements or hold up job applications.
"We want to make sure that people understand the consequences of bankruptcy," said James Jones, consumer affairs manager for Experian.
"People who come to us generally think their credit record is wiped clean after being discharged. This is not true. Bankruptcy is no easy way out of debt.
"We urge people who are considering the bankruptcy option to seek advice," Mr Jones continued. "After you're discharged from bankruptcy there are some serious ramifications."
Last month, Experian announced the launch of a new guide to insolvency and debt solutions, called "Your Credit Report and Bankruptcy".
The company aims to use the Credit Reports Basics guide to raise awareness of how insolvency can affect your ability to apply for loans and affect your life for years afterwards.To read more about loans, click here.
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