Debt help: Insolvencies 'set to rise in 2010'

18/02/2010

The UK has seen a 13 per cent increase in the numbers of personal insolvencies, according to KPMG's latest analysis of the Ministry of Justice's figures.

Figures from the Insolvency Service show that Individual Voluntary Arrangements (IVAs) also rose by 22 per cent during 2009 compared to the previous year.

Certain areas of Britain may be in particular need of debt management schemes in order to avoid drastic action in the future.

Cambridge had a particularly high level of personal insolvencies with 149 people declaring themselves bankrupt in the final quarter of 2009. This was a 39 per cent rise when compared to the same time in 2008.

Chris Nutting, director of personal insolvency at KPMG, said: "Lessons from history show that personal insolvencies will continue to rise after the recession finally ends and for some time to come.

"If, as predicted, there are rises in tax and reductions in public sector spending, a lot of people will need to take drastic action to resolve their financial problems."

He added that 504 people are choosing formal insolvency procedures such as bankruptcy or IVAs, to solve their financial problems.

Posted by Fiona Smith

Tags; Debt Management and Banking,

Regional Debt Advice; Debt Advice Cambridge,

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