Drop in insolvency numbers
April 11, 2008
A recent report has shown that the number of people that are being declared insolvent in the UK has fallen across England and Wales. The third quarter of the year saw a drop of 3% on the previous quarter in terms of personal insolvencies. The third quarter of the year also saw a drop of 5% in the level of personal insolvencies compared to the third quarter of last year.
Despite the financial turmoil that has hit the money markets across the UK and globally, personal insolvencies have now fallen to 26,072. Individual Voluntary Arrangements, or IVAs, have dropped by 4.3% to 10,239, and bankruptcies have fallen by 2.1% to 15,833. There has also been a drop of 1% in the number of repossession orders being made by courts across England and Wales, despite increasing concerns over repossession levels fuelled by rising interest rates and repayments.
When broken down the level of IVAs across England and Wales has fallen by 14% compared to a year ago. However, the level of bankruptcies has risen by 2.2% over the same period. When put together, however, the figures still show a health drop in collective insolvencies comprising both bankruptcies and IVAs. This is the third quarter in a row that insolvency levels have fallen across the England and Wales, and one industry official claimed that borrowing on credit cards had also fallen, stating: “There has been a fall for the last couple of years, so the insolvency figures have levelled off.”
Another industry professional added that the increased stringency required from IVA firms had added to the drop in figures, stating: “There has been considerable pressure on IVA specialists to be more fussy about the cases they take on. There have been examples of proposed IVAs that were inappropriate and for which the fees were too high.”
- Debt management firms may be able to write off debt As most people are aware the level of personal debt amongst consumers in the UK is very high, and with borrowing costs rising, the cost of living on the up, and increases in a range
- Is the insolvency road about to get busier? Over recent years more and more people have been turning to insolvency in order to escape mounting debt that they can never hope to repay. The past couple of years has seen an increase in
- Bankruptcy hell during first few months of the year Some experts have stated that the frivolous spending that many consumers indulged in over the Christmas months will now result in bankruptcy hell over the first few months of this year, with the first three
- Bankruptcies could be fuelled by Christmas spending Many consumers in the UK are still taking stock of the amount of money that they have spent over the Christmas period, and industry officials are now concerned that the level of overspending by some
- Don’t look upon insolvency or equity as an excuse to get into debt A recent report from the Personal Finance Research Centre has suggested that many people in the UK may be looking upon equity or insolvency opportunities as an excuse to get into high levels of debt,
Comments
Got something to say?