Overview

Where previously bankruptcy was something that happened to the less wealthy majority, the current financial turmoil has seen those generally considered well-off also struggling. We are seeing an increasingly large number of wealthy individuals fighting to avoid or becoming subject to some form of insolvency process.

Historically, professions including law, accountancy and banking, were seen as the industries to enter due to the high earning potential. The economic boom following the previous recession in the 1990s created a new generation of affluent individuals, including entrepreneurs who became high earners. The risk-takers among them went on to create substantial paper wealth, amassed in property portfolios, etc. This group were prepared to spend beyond their means, supported by almost unlimited credit, and with rising asset values, their liabilities appeared manageable.

To read more click View Briefing