Insolvency statistics Q2 2014

fatbelly

Figures released today show a surprising increase in IVAs

https://www.gov.uk/government/statistics/insolvency-statistics-april-to-june-2014

From the report:

The number of people who became insolvent in England and Wales was 27,029 in Q2 2014, a 5.1% increase on the same quarter last year. This increase was driven by a 20.2% rise in the number of individual voluntary arrangements (IVAs) compared with a year earlier. There were 14,571 IVAs registered in Q2 2014, the highest level since their introduction in 1987. IVAs now make up over half of all individual insolvencies.

Depth_Charge

Hi fatbelly

Interesting stats

What do you make of them?

DC

DorisTrousers

Maybe people are turning away from the creditor sector preferred route of never ending DMP's. Certainly worth a thought as awareness grows about the various debt solutions.

longtermplanner

Interesting statistics.

Article in the Guardian on Saturday saying that a review of DRO conditions is to be announced this week: http://www.theguardian.com/money/2014/aug/02/government-review-debt-relief-orders-insolvency-bankruptcy.

R3 having been calling for an increase in the DRO limit to £30,000 for quite a while now.

Depth_Charge

DorisTrousers wrote: »

Maybe people are turning away from the creditor sector preferred route of never ending DMP's. Certainly worth a thought as awareness grows about the various debt solutions.

Hi

As far as never ending is concerned, well, you could say the same about IVAs in certain circumstances, such as secured loans, payment breaks due to unaffordability for one reason or another and of course the PPI debacle (not to mention the huge amounts of money going out of the arrangement)

There are also the tens of thousands that fail only to put the debtor(s) back to square on or worse (including on occasions being light of thousands paid in fees).

It would interesting to see some stats on how many people are in default or behind with payments on their IVAs

There continues to be the hard sell in some quarters with IVAs as there is always going to be with debt solutions where commission, financial interest and profit are concerned (in these circumstances it can never be truly classed as independent and impartial in my opinion) Its the same in any commission & profit making business really, for example double glazing and timeshares etc:)

The rules where vehicles are concerned are somewhat of a barrier with bankruptcy in my opinion and should be changed.

The fees involved in bankruptcy are also an issue.

Many people are in limbo (including never ending DMPS, token offers or informal arrangements) not being able to get the fresh start with their debt problems which of course on the whole is supposed to be the idea of it all.

The rumoured changes / review of Debt Relief Orders could be interesting and the reaction of the IVA industry even more so...maybe:)

It will be interesting to in the long run to see how these new IVA numbers pan out but if the past is anything to go by then what can you say other than the CABs should brace themselves for sorting out even more failing & failed IVAs.

Having said all the above an IVA can be the right and sensible solution depending on circumstances and I do see a case for low cost IVAs.

Just my opinions & 'take' as always:)

DC

longtermplanner

The Insolvency Service has posted details about the DRO review today: https://www.gov.uk/government/consultations/insolvency-proceedings-review-of-debt-relief-orders-and-the-bankruptcy-petition-limit

It looks quite comprehensive to me, and tacked on is a question asking if the £750 minimum debt for a creditor bankruptcy petition should be increased. I expect everyone here will agree that it should!

fatbelly

longtermplanner wrote: »

The Insolvency Service has posted details about the DRO review today: https://www.gov.uk/government/consultations/insolvency-proceedings-review-of-debt-relief-orders-and-the-bankruptcy-petition-limit

It looks quite comprehensive to me, and tacked on is a question asking if the £750 minimum debt for a creditor bankruptcy petition should be increased. I expect everyone here will agree that it should!

The call for evidence booklet is very interesting - worth a read for anyone dealing with DROs, even if they're not thinking of contributing evidence

There's also a surveymonkey site for those who had a DRO in 2009-2013 to tell the Insolvency Service their experiences. I think that's worth a separate thread.

Incidentally I think it's a given that the bankruptcy minimum will rise, probably to 3k, though the Irish Republic have raised their minimum much higher - £16k ish in Euros.

As for DROs I think there is a case to increase the limit - I'd be pleased to see 20k

DorisTrousers

"Hi

As far as never ending is concerned, well, you could say the same about IVAs in certain circumstances, such as secured loans, payment breaks due to unaffordability for one reason or another and of course the PPI debacle (not to mention the huge amounts of money going out of the arrangement)

There are also the tens of thousands that fail only to put the debtor(s) back to square on or worse (including on occasions being light of thousands paid in fees).

It would interesting to see some stats on how many people are in default or behind with payments on their IVAs

There continues to be the hard sell in some quarters with IVAs as there is always going to be with debt solutions where commission, financial interest and profit are concerned (in these circumstances it can never be truly classed as independent and impartial in my opinion) Its the same in any commission & profit making business really, for example double glazing and timeshares etc

The rules where vehicles are concerned are somewhat of a barrier with bankruptcy in my opinion and should be changed.

The fees involved in bankruptcy are also an issue.

Many people are in limbo (including never ending DMPS, token offers or informal arrangements) not being able to get the fresh start with their debt problems which of course on the whole is supposed to be the idea of it all.

The rumoured changes / review of Debt Relief Orders could be interesting and the reaction of the IVA industry even more so...maybe

It will be interesting to in the long run to see how these new IVA numbers pan out but if the past is anything to go by then what can you say other than the CABs should brace themselves for sorting out even more failing & failed IVAs.

Having said all the above an IVA can be the right and sensible solution depending on circumstances and I do see a case for low cost IVAs.

Just my opinions & 'take' as always

DC"

Very illuminating I am sure, but I don't recall mentioning IVA's at all, only various debt solutions? Anyone would think you had some sort of axe to grind, although I am sure that isn't really true.

Interesting point about financial interest with IVA's though, I am pretty sure that referrals to commercial firms from the free sector, for example from StepChange Debt Charity to GT, or even to it's own (profit making) IVA arm of StepChange, attract a "financial interest". Whether GT, who CAB refer IVA cases to, pretty illogically in my view but hey ho, have any similar arrangements with CAB is less clear. You won't find much about any arrangements, or not as the case may be, in the public domain though. If anyone's viewpoint is that any such arrangement(s) render advice given as NOT being impartial, then that may explain why there is such little information in the public domain.

Still, regardless of opinion, enjoyable as always.

Depth_Charge

DorisTrousers wrote: »

"Hi

As far as never ending is concerned, well, you could say the same about IVAs in certain circumstances, such as secured loans, payment breaks due to unaffordability for one reason or another and of course the PPI debacle (not to mention the huge amounts of money going out of the arrangement)

There are also the tens of thousands that fail only to put the debtor(s) back to square on or worse (including on occasions being light of thousands paid in fees).

It would interesting to see some stats on how many people are in default or behind with payments on their IVAs

There continues to be the hard sell in some quarters with IVAs as there is always going to be with debt solutions where commission, financial interest and profit are concerned (in these circumstances it can never be truly classed as independent and impartial in my opinion) Its the same in any commission & profit making business really, for example double glazing and timeshares etc

The rules where vehicles are concerned are somewhat of a barrier with bankruptcy in my opinion and should be changed.

The fees involved in bankruptcy are also an issue.

Many people are in limbo (including never ending DMPS, token offers or informal arrangements) not being able to get the fresh start with their debt problems which of course on the whole is supposed to be the idea of it all.

The rumoured changes / review of Debt Relief Orders could be interesting and the reaction of the IVA industry even more so...maybe

It will be interesting to in the long run to see how these new IVA numbers pan out but if the past is anything to go by then what can you say other than the CABs should brace themselves for sorting out even more failing & failed IVAs.

Having said all the above an IVA can be the right and sensible solution depending on circumstances and I do see a case for low cost IVAs.

Just my opinions & 'take' as always

DC"

Very illuminating I am sure, but I don't recall mentioning IVA's at all, only various debt solutions? Anyone would think you had some sort of axe to grind, although I am sure that isn't really true.

Interesting point about financial interest with IVA's though, I am pretty sure that referrals to commercial firms from the free sector, for example from StepChange Debt Charity to GT, or even to it's own (profit making) IVA arm of StepChange, attract a "financial interest". Whether GT, who CAB refer IVA cases to, pretty illogically in my view but hey ho, have any similar arrangements with CAB is less clear. You won't find much about any arrangements, or not as the case may be, in the public domain though. If anyone's viewpoint is that any such arrangement(s) render advice given as NOT being impartial, then that may explain why there is such little information in the public domain.

Still, regardless of opinion, enjoyable as always.

Hi

No axe to grind, just telling it like it is

An IVA is presumably included in the various solutions you allude to.

You make fair points on the referrals, not all CABs are the same as you already know.

Groundhog day again between us, but I agree on the always enjoyable stance and somewhere hidden in the jousting there is usually some very good information and points both ways...well that's my opinion anyway

PS - would you by any chance be going to the MALG this year?

DC

DorisTrousers

Jousting? There's a blast from the past!!

As for MALG, always enjoy it so hope so, although you may be surprised to hear that by the time it comes round I hopefully won't have to pay for my place.....

Depth_Charge

Hi

The true Independent voice of the CAB is always welcome at the MALG (including the monthly regional forums) or it might end up being a free run for the profit makers & others:)

I believe that they have reduced the prices this year and I understand there will be a number of free places again, luck of the draw that however. I think this is to hopefully bring in more delegates from the genuine free independent sector

A CAB branch that you are probably pretty familiar with look like having a strong presence again at this years MALG with some of the usual suspects attending, so going on past conferences there should be a certain amount of 'balance' brought to the proceedings (just like it should be really)

If circumstances prevail and we do bump into each other, a drink again perhaps, the wine on offer there is pretty good so they tell me and the conversation is always enjoyable

MALG Conference details below for info purposes

http://www.malg.org.uk/conference.html

DC