Low earners most at risk of bankruptcy

Landlords may find they are giving out more Section 8 Notices to tenants who earn less than the average wage, as figures show that this group is most likely to be declared bankrupt.

The Consumer Credit Counselling Service (CCCS) discovered that three-quarters of those recommended to declare themselves bankrupt last year were low-earners.

"Overtime bans, wage caps and forced shorter working hours are limiting the ability to maximize income," explained Delroy Corinaldi, CCCS external affairs director.

Statistics show that the average debt of those recommended bankruptcy by the group last year stood at £31,000, while one in five owed in excess of £40,000 in unsecured debt.

Meanwhile, one in ten were over 60 years of age, while 45 per cent were more than 40 years old.

The Trades Union Congress recently warned that more people than ever are working unpaid overtime in a bid to keep their jobs.

If you're a landlord who is facing an increasing pile of rent arrears, then landlords may have to set about evicting tenants using a Section 8 Notice.

  • Landlord and Tenancy News from Lawpack: How to evict tenants for rent arrears with our solicitor-approved Section 8 Notice

Published on: March 2, 2011

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