Bankruptcies reach new levels in Britain

LONDON, Feb. 15 (UPI) -- A record number of people in the United Kingdom sought bankruptcy protection in 2007, the British Ministry of Justice reported Friday.

The number of those who initiated the proceeding for themselves rose to 53,114, a slight gain from the 52,717 who did so in 2006, but more than double the number who did so in 2003, The Times of London reported.

The rules have changed. Bankruptcy in the United Kingdom is now discharged after one year. In years past, it was three years.

"But, this shorter time frame doesn't change the fact that your assets, for example, your house, are still up for grabs if you declare yourself bankrupt," Mike Gerrard at Grant Thornton, an accounting firm, told The Times.

During 2007, the number of referred bankruptcy petitions, forwarded by creditors, fell by 700 to 20,156. But, experts warn that the credit crisis at the British bank Northern Rock could swell the number of bankruptcies even higher in the United Kingdom in 2008.