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More people are going bust
The number of people becoming insolvent soared to its highest level since records began during the final three months of last year, Government figures show.
A total of 20.461 people in England and Wales went insolvent during the quarter, 15pc more than during the previous three months – which at the time was the highest figure since records began in the 1960s.
During the period, 13,501 people went bankrupt, nearly 11pc more than in the three months to the end of September and 57pc higher than the figure for the same period of 2004, the Insolvency Service said.
At the same time, the number of people taking out Individual Voluntary Arrangements (IVAs) under which they agree to repay a set amount each month in exchange for interest on their debts being frozen – more than doubled year on year to 6960.
At the same time, the Council of Mortgage Lenders released figures showing the number of properties repossess by lenders had risen by 22pc during the second half of 2005.
The group said 5630 homes were repossessed during the period, up from 4620 during the first half of the year, although it stressed that the figures were extremely low by past standards, with repossession peaking at 38,930 in the second half of 1991.
A total of 10.260 properties were repossessed during 2005 as a whole, 70pc more than during 2004, but still the third lowest figure since 1983.
Chris Williams, eastern regional chairman of R3, the Association of Business Recovery Professionals and partner with McTear Williams & Wood said “These figures confirm our members’ own experiences”.
“Personal debt is out of control in this country. Credit card companies are lending too much to people who can never afford to repay their borrowings.
“If companies cannot lend more sensible, it is up to the Government to help people to manage their debts better themselves.
“We can make a start in schools, but we also need to find a way to help and educate adults.”
Eastern Daily Press
4 June 2006