Why bankruptcy is no longer an easy route out of your debt troubles

What you need to know:

  • Previously, the average number of cases filed per year was 300.

  • However, after the Insolvency Act of 2015 was passed, the number has fallen to 15 bankruptcy cases a year.

  • After insolvency has been declared, a trustee is appointed to manage the individual’s estate.

Three years after the old Bankruptcy Act was repealed, the number of cases filed under the now-tightened Insolvency Act have drastically fallen — meaning that people were filing for bankruptcy to evade paying their debts.

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