Bankruptcy in the UK is on the increase. The most recent figures from the DTI show that in the third quarter of 2005 personal bankruptcies rose by 32% and as many as 12,256 people were declared bankrupt.

One of the reasons for this rise is that a growing number of people with serious debt problems see bankruptcy as an easy way out following the Enterprise Act of 2002 that made it possible for a bankrupt to be discharged after less than a year.

However, anyone who thinks bankruptcy is easy is mistaken