MSE News: Record number declared insolvent

I'd guess at a lot, no scientific I know, but they are basically a cheap way to go bankrupt. Personally I think the banks taking what they see as a hard line will come back to bite them.

If someone is in genuine difficulty and the banks keep piling on charges and interest (as they are entitled to do under the contract) it pushes the person more towards insolvency. Where I assume the bank gets very little return even by selling the debt on.

I thought insolvency always went up after a recession, and we may not be out of the woods yet.

Frankly I a disagree with with all this debt write off stuff. I mean yes the banks should keep proper records and it reflects badly on them they did not, and debts should certainly be struck out if, as has occured in some cases, the person has been disadvantage by them making an error because they didn't keep the original agreement.

However if you've borrowed the money you know you owe it. I agree banks need to do a HELL of a lot more to help people. They should freeze interest in bad situations, but they don't. They just keep piling it on making the most rational course of action, in some cases, for the debtor to STOP making any payments so that the debt gets sold on (at this point the bank gives up on getting the money and stops charging interest).

Totally agree about lending too much.