Personal insolvency figures at record high

Friday 5th February 2010

A record number of people were declared insolvent in England and Wales during the last quarter of 2009, official figures have revealed.

Data from the Insolvency Service published today showed a total of 134,142 people were declared insolvent last year.

The new figures exceed the previous record of 107,288 personal insolvencies set in 2006 and represent a 25 per cent rise on the same months the previous year.

With rising unemployment and continued financial pressures a record 6,355 businesses collapsed in 2009.

The number of people claiming insolvency in 2009 was up 26 per cent compared with 2008 and officials state the figure is likely to increase in the future.

There are a number of different forms of insolvency from bankruptcy, individual voluntary arrangement and debt relief orders.

Despite this, the number of people involved with insolvencies increased by 332 in the last section of the year compared to the previous months.

The last quarter statistics included 17,007 bankruptcies, down 5.5 per cent on last year, 13,219 individual voluntary arrangements (IVAs) which were up 26.3 per cent on last year and 5,348 debt relief orders (DROs) which were recently introduced.

DROs are a way in which people who have £15,000 or less in debts can write it off without filing for bankruptcy in full.

Commenting for the BBC, Louise Brittain of Deloitte said: "This is a result of increased creditor pressure which is unlikely to let up any time soon, and highlights the desperate financial difficulties facing individuals."

She added that many people usually pay off debts from Christmas in the new year and expressed surprise at the record high figures.

Related News

<< Back To News Listings

News Article Search