Individual Insolvencies up by almost 18%

Published ¤ 10/05/2010 09:37:40

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According to the government's Insolvency Service, the number of individual insolvencies has risen sharply over the last year to an annualised figure of over 142,000, compared to 121,000 a year ago, and only 30,000 10 years ago.

This figure includes bankcruptcies, individual voluntary arrangements (IVA) and debt relief orders (DRO). These figures represent a rise of almost 18% in the last 12 months, and a massive 373% increase over the last 10 years.
Paul Skinner of PKS commented "This figure, although very frightening, may not demonstrate the true state of the market. The figure does not, for instance, include those people that are currently on debt management plans (DMP), nor those that are only just managing to keep their head above water.
"With the hung parliament, and the national debt crisis, the economy will have to tighten its belt to bring the deficit under control, and this may well lead to further job losses and possibly interest rate rises. These will push many more people in to deeper water, and these numbers may shoot up even further.
"People that are struggling to pay their credit cards, loans or mortgage, should seek independent advice straight away - too many people bury their head in the sand, and leave it until it is too late. There are a number of strategies available to help people in this situation, and insolvency should be a last resort."
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