A Sobering Thought for Sunday

rog2

The Government's Insolvency Service has announced that there were more than 30,000 'Insolvencies', in England and Wales, during the first three months of this year.
This is an increase of 23.9% on the same period in 2006.
However, they go on to say that the rate of 'Insolvencies' is slowing down, as more and more creditors are adopting a tougher approach to IVAs.
Does this mean that Bankruptcy will be the only way for many more people to solve their debt problems?

Richard_S

Interesting thought Rog,

Lots of IVA's are taken out by people who are on relatively high incomes with reasonable levels of equity in their properties. Imagine a blip in the economy that started to push unemployment higher exacerbating already wobbly IVAs, and ever increasing numbers of people were pushed into bankruptcy.

You don't need to be a gloom monger to forecast bankruptcies reaching 150,000 in 2007, assume an average debt of £50k and the banks are looking at bad debt provisions of £7.5 billion.

Mmmm, think I might selling bank shares, I can sense a profit coming on :rotfl:

Rich