The North-South divide is highlighted again in relation
to personal insolvencies throughout England in 2009. The
North East was identified as having the highest number
of personal insolvencies (IVA
and bankruptcy).
The Insolvency service also confirms that London had
the lowest level. Personal insolvencies are at record
highs. The main reasons being cited as unemployment and
debts compounded by the recession. The data for Wales
and England identifies geographical areas and the prevalence
of personal insolvencies.
Bankruptcy in someways is seen as the traditional manner
in escaping debt. However there is the likelihood of losing
your home and assets to pay creditors.
IVA (Individual Voluntary Arrangement) is an agreement
between your creditors and you. This involves less stigma
and is conducted by an insolvency practitioner. There
is far less chance of you losing your home but you are
subject to an ongoing agreement to pay your debts over
a number of years.
Debt Relief Orders were introduced in early 2009. they
allowed for consumers with debts of £15,000 or less
and minimal assets and/or surplus income to relieve their
debt without the need for bankruptcy.
The highest levels in the North East were 38.1 personal
insolvencies per 10,000 adults. Higher than average within
Wales and England of 31.1, while also considerably higher
than London, the lowest at 19.6.
The North East figures are also attritubable to how the
construction industry suffered during the economic downturn.
The South West in the preceding year, however, was at
the highest level and remained the second highest in 2009.
Figures per 100,000 of the population was 35.9.
Typical average figures across Wales and England are represented
by Wirral and north-east Derbyshire. These figures confirm
data from 2009 however current data shows 2010 will be
no easier for those facing debts.
The number of consumers declared insolvent in Wales and
England has continued at record highs over five consecutive
quarters. Personal insolvencies were at 35,682 in the
first quarter of 2010, an increase year on year of 17.9%.
.gif){kind=spacer}
