Personal insolvency figures climb higher
The number of people who were declared insolvent in England and Wales hit a record high in the last quarter of 2009 and during the year in full, the BBC reports.
The figures from the Insolvency Service marked the depth of the recession, with 35,574 people declared insolvent in the last three months of the year. That was a rise of 25% on the same period a year earlier.
The 134,142 insolvencies in 2009 comprised 74,670 bankruptcies (which were up 10.7% on 2008), 47,641 Individual Voluntary Arrangements (IVAs), (which were up 21.8% on 2008) and 11,831 Debt Relief Orders (DROs).
DROs were introduced in April 2009 to help those with unsecured debts under £15,000, and relatively few assets, to write off the debts without resorting to full-blown bankruptcy.
DROs have been designed to help debtors with no assets who would struggle to find the fees to go bankrupt which costs £510, or £360 for those on low incomes. The fee for a DRO is £90 but it is not an easy option, and the same restrictions as bankruptcy apply.
For those facing difficulty in managing their money Credit Action’s Moneymanual Dealing with Debt may be able to help you get your finances back on track. The manual can be accessed here in PDF format, free of charge.
The Consumer Credit Counselling Service (CCCS) is a registered charity offering free, confidential, and independent advice and support to anyone who is worried about debt - they can be contacted on freephone 0800 138 1111 (8am-8pm) or you can visit their website - www.cccs.co.uk. CCCS can also help to arrange insolvency measures for clients if this is the best course of action for them.
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