Public attitude towards bankruptcy has softened

[Legal Beagles]

Research published by the Insolvency service which examines attitudes to bankruptcy shows that overall, there has been a reduction in the percentage of respondents who agree that there is a stigma associated with going bankrupt.
The numbers of respondents who agreed with the question, ‘Is there a stigma associated with bankruptcy?’ fell from 71% in 2004 to 64% in the 2009 survey.
When asked about their perceptions, members of the public who had not been made bankrupt were more likely to report lower levels of stigma in 2009, (43%) when compared with those who had been made bankrupt, (77%).
The report highlights the main factors contributing to the creation of stigma as:

• the advertisement of a bankruptcy order;
• attending court;
• being unable to repay debts;
• problems in obtaining a bank account; and
• an adverse credit rating.

The research is based on a survey of bankrupt individuals, bankrupt businesses and non bankrupt members of the public undertaken in January 2009. This research provides an update to previous surveys undertaken in 2004 and 2006/7 as part of the overall evaluation of the changes to insolvency provisions introduced as part of the Enterprise Act 2002.
View the full report ' Enterprise Act 2002: Attitudes to Bankruptcy 2009 Update.'


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