💾 Archived View for gmi.noulin.net › mobileNews › 1797.gmi captured on 2023-06-16 at 20:37:32. Gemini links have been rewritten to link to archived content
⬅️ Previous capture (2023-01-29)
-=-=-=-=-=-=-
2010-02-05 06:49:54
The number of people who were declared insolvent in England and Wales hit a
record high in the last quarter of 2009 and during the year in full.
The figures from the Insolvency Service marked the depth of the recession, with
35,574 people declared insolvent in the last three months of the year.
That was a rise of 25% on the same period a year earlier.
The upward trend, which slowed in the last quarter of the year, was driven in
part by new style Debt Relief Orders.
These allow people with debts but relatively few assets to write off the debts
without a full-blown bankruptcy.
Annual rise
Over 2009 as a whole, there were 134,142 people declared insolvent in England
and Wales. This was higher than the previous record - in 2006 - of 107,288.
FORMS OF INSOLVENCY
one year, but you are likely to lose all your assets including your house to
pay something to the creditors
creditors, overseen by an insolvency practitioner. Less stigma, less chance of
losing your home, but involves paying some of your debts in one go or over a
number of years
debts of less than 15,000 and minimal assets or surplus income to write off
debts without a full-blown bankruptcy
The number of personal insolvencies only crept up by 332 in the final three
months of the year, compared with the previous three months.
This was made up of 17,007 bankruptcies - down 5.5% on the same quarter of the
previous year, 13,219 Individual Voluntary Arrangements (IVAs) - up 26.3% on
the corresponding quarter of the previous year, and 5,348 Debt Relief Orders -
which were introduced in April.
Record low interest rates would have staved off insolvencies for some people,
but long-term unemployment would make it difficult for others to avoid the
situation.
However some experts have suggested that there will be more pain to come
despite the UK coming out of recession.
"We expect to see the numbers continue to rise as the upwards trend in personal
insolvencies traditionally continues for nearly three years after the worst of
a recession has passed," said Pat Boyden, from accountancy firm
PricewaterhouseCoopers.
Business picture
In the last quarter of 2009, the number of companies going bust fell by 7% to
1,465, compared with the previous quarter.
The figures continued the downward trend in receiverships, administrations and
company voluntary arrangements which has been seen during the past year.
Even so, 2009 as a whole still saw a record number of companies being declared
insolvent with an annual total of 6,355, a 1% increase on 2008.
The number of companies being liquidated - the end stage of the insolvency
process - fell in the last three months of 2009. There were 4,566 company
liquidations, down by 2% on the previous quarter and 1% fewer than a year
earlier.
For the whole of 2009, the number of firms being liquidated rose to a record
19,077, a rise of 23% compared with the previous year.