Debt problems lead to 'record high' insolvencies

08/02/2010

The number of people with unmanageable debt problems in England and Wales hit record levels in the last year, new figures have revealed.

The Insolvency Service said that just over 134,000 people were declared insolvent in 2009 – this was significantly higher than the previous record set in 2006.

Indeed, it appears that people are struggling to manage their finances more than ever, despite the apparent recovery of the UK economy.

In the final quarter, the amount of bankruptcies rose above 35,500 – an increase of a quarter on the same period last year.

Kevin Still, director of EuroDebt, said that "the number of Individual Voluntary Arrangements (IVAs) has continued to grow, with a 26 per cent increase on the same quarter in 2008. Protected Trust Deeds, the Scottish equivalent of an IVA, have grown at the same levels.

"There are roughly five Debt Management Plans (DMPs) for every IVA," he added, "so there has been a marked increase in the number of debt solutions throughout the UK."

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