Personal insolvency rates at an almost six-year high

Following on from Walsh Taylor writing about the Carillion collapse and North East businesses struggling in the past couple of months, recent figures have shown that personal insolvency figures have increased.

According to statistics from the Insolvency Service, the first three months of 2018 saw 27,388 people become insolvent across England and Wales. This represents the highest quarterly number since the third quarter of 2012, which is almost six years ago.

The government agency stated that the sharp rise came partly as a result of an increase in individual voluntary arrangements (IVAs). These can be defined as a procedure whereby a scheme of arrangement of affairs or composition in satisfaction of debts is put forward to creditors.

Despite IVA levels soaring (and being the largest since they were first introduced in 1987), however, it must be noted that the amount of debt relief orders (DROs) and bankruptcies surged too. In total there were in 16,676 IVAs, 6,524 DROs and 4,188 bankruptcies.

One trigger of these issues has been identified as the growth in consumer credit, with Duncan Swift, Vice President of the insolvency and restructuring body R3, saying that the availability of cheap credit has not necessarily made it possible for everyone to service their debts.

In understanding the complexities of both personal and corporate insolvency, our Leeds, Harrogate, Bradford and Darlington-based teams are on hand to use our expertise to help formulate solutions for financial problems.

With decades of experience working with individuals, limited companies, sole traders, partnerships, charities and social enterprises, we appreciate the importance of clear and timely advice.

We therefore offer our first meeting completely free of charge. This can be arranged within one day of your call and at a location that is convenient for you.

Please feel free to contact us on 03300 244 660 for any more information.