MSE News: Personal insolvencies hit record high

Former_MSE_Alana Posts: 252 Forumite
edited 6 November 2009 at 1:13PM in Bankruptcy & living with it
This is the discussion thread for the following MSE News Story:

"Today's individual insolvency figures are again the highest since records began in 1960 as the economic woes continued to take their toll ..."


Thanks to fermi for the original post. The two threads have been merged to prevent duplication.


  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
    BBC News: Personal insolvency rises by 28%

    A record number of people were declared insolvent in England and Wales in the third quarter of 2009, according to figures from the Insolvency Service.

    There were 35,242 personal insolvencies, up 28% from the same period last year and an increase of 6.6% on the previous three months.

    This extended the record number recorded earlier this year.
    But there was better news for business, with 4,716 company insolvencies, down 4.7% quarter-on-quarter.

    However, the number of businesses going bust in the third quarter of the year was still 14.6% higher than the same period a year ago


    INDIVIDUAL INSOLVENCIES (not seasonally adjusted)

    There were 35,242 individual insolvencies in England and Wales in the third quarter of 2009. This was an increase of 28.2% on the same period a year ago.

    This was made up of 18,347 bankruptcies (which were up 6.4% on the corresponding quarter of the previous year),12,390 Individual Voluntary Arrangements (IVAs), (which were up 20.9% on the corresponding quarter of the previous year) and 4,505 Debt Relief Orders (DROs).


    The Debt Relief Order is a new individual insolvency procedure which came into force on 6 April 2009 and which provides an alternative route into personal insolvency for certain categories of over-indebted individuals, subject to some restrictions. Additional details are provided under the “Notes to Editors”, paragraph 12 and on the Insolvency Service website. Some of those who had a DRO approved would have been declared bankrupt had the DRO route not been an option, but it is not possible to quantify this proportion.

    In the third quarter of 2009, 85% of bankruptcies were made on the petition of the debtor, slightly down on the previous quarter, although figures remain slightly higher than throughout 2008 as a whole. The percentage of bankruptcy orders involving trading debts (self-employed bankruptcies) was 13.1% in the second quarter of 2009 (third quarter 2009 figures for trading-related bankruptcies are not yet available), which is a decrease from 13.7% in the previous quarter, but a little higher than throughout 2007 and 2008.



    The following tables present recent trends in insolvencies in Scotland and Northern Ireland, complementing those for England and Wales above (longer series back to 1999 are presented in the accompanying detailed tables).


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  • MicheH
    MicheH Posts: 2,631 Forumite
    Thanks for that fermi, I'm one of those statistics, makes for sad reading
  • Trom
    Trom Posts: 275 Forumite
    Just spotted this and came to see if anyone else had seen it. Not that surprising I guess.
    BR 22/10/2009 ED 08/07/2010
  • princesspinchie
    Not surprised at all by this. Thanks for the info fermi
    DRO granted 17/10/2009
  • oregonuk1
    oregonuk1 Posts: 136 Forumite
    i think over time that will just get bigger and a recession like the one we have is all it needs.
  • dojoman
    dojoman Posts: 12,027 Forumite
    It just shows how many people are in the same boat, a sad sign of the times I suppose. :eek:
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • dollparts
    dollparts Posts: 1,256 Forumite
    First Anniversary Combo Breaker First Post
    Sad but true.
    There used to be a street named after Chuck Norris, but it was changed because nobody crosses Chuck Norris and lives.
  • alastairq
    alastairq Posts: 5,030 Forumite
    it also shows how many more switched-on folk are out there...more than the financial industry would like, I'll wager?

    The stories of petulance on the part of the big institutions towards BR's get more and more...

    I also wager performance bonuses at DCA's and CC's will be down as well??
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
  • alastairq
    alastairq Posts: 5,030 Forumite
    BTW...I don't know why so many people get on their high horses regarding the morality of BR....when major govenment ministries are in fact, insolvent as well..[MoD for one]...
    No, I don't think all other drivers are idiots......but some are determined to change my mind.......
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