Press Release

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

Equifax warns Scottish consumers about the long-term impact of bankruptcy

www.equifax.co.uk

London - 23rd July 2008 - The latest figures from Accountant in Bankruptcy - the debt management organisation which is accountable to the Scottish government - have revealed that the number of people declared insolvent in Scotland has more than doubled since new laws made the process easier. The Accountant in Bankruptcy said that there were 2,853 cases between April and June 2008 - a 104% increase on Quarter One and 78% higher than the same period in 2007.

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.

Laws in Scotland now allow people on low incomes - earning less than £220 per week with assets of less than £10,000 - to volunteer for insolvency if court action is brought against them by a creditor. And the Accountant in Bankruptcy reported that 1,709 of debtor applications between April and June met the low income and low asset criteria.

"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 these latest figures from Scotland, which show that thousands of people are actually deciding to opt for bankruptcy in a bid to try to escape their debts.

"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.

Accountant In Bankruptcy Figures released 18th July 2008

If you would like more information or would like to arrange an interview please contact Cecile Stearn, Elinor Puzey or Louise Fowler at HSL on 020 8977 9132 or email: louise@harrisonsadler.com