Insolvency victims increased by 33,000 in second-quarter
As expected, there was a significant increase in insolvency cases in the second quarter of 2009 although the future could get very much worse before it gets better. The insolvency service confirmed that 33,073 people in England and Wales declared themselves insolvent in the quarter to the end of June which is 27% up on the same time last year and up 9% on the previous quarter. The situation is very difficult across the UK with bankruptcies proving to be particularly popular.
A massive 19,000 people were declared bankrupt, with 12,000 agreeing individual voluntary arrangements (IVAs), during the period in question. A further 2,000 people also made use of the new debt relief orders which were introduced in April specifically for those with relatively small debts. The more people who are declared insolvent the more pressure on the UK benefit system and ultimately on the economy.
Could more be done to help those in debt? Should the banks be forced to take a hit?
There are many questions to be answered with regards to the increase in insolvency in England and Wales although ultimately it will come as no surprise to those in the industry. Credit card debt has been a killer for many people in the UK and continues to cause more worry and concern with many people unable to cover their minimum monthly payments. Will we ever learn?
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