The nnumber of individuals applying for insolvency jumped to the highest level in almost three years in the first three months of 2017, in a further sign of the mounting financial pressure facing UK households.
Personal insolvencies in England and Wales totalled 24,531 between January and March, up 6.7% on the previous quarter and 15.7% higher than the same period a year earlier.
Thus trend can only get worse. As I have noted in the last couple of weeks, pay increases are now falling behind inflation and there are signs that the availability of consumer credit is falling. Increasingly ends will not meet and people will be facing bankruptcy. Brexit will impose a very high human cost.
Then it is explained to the Snippa Spud:
Solanum Tuberosum says:
April 30 2017 at 8:58 am
I think you’re mistaken that this is a portent of doom. The increase is down to a rise in IVAs, and over the last year or two it has become easier to get one with the bottom offer now being as low as £60/month and quite a few ahem ‘factory practitioners’ appearing in this sector. In addition some companies providing informal debt management plans have been pulling out and when their clients are reassessed and being transferred from the informal sector onto an IVA.
Richard Murphy says:
April 30 2017 at 9:37 am
What colour gloss is your favourite?
King Edward says:
April 30 2017 at 10:24 am
The data is a sum of three elements : IVAs , Debt Relief Orders and Bankruptcy orders. The last two of these are broadly flat. The rate of company liquidations recorded separately are also broadly flat. The figures do not show those on Debt Management Plans. So the rise in the headline number being down to an increase in IVAs is not in doubt.
So why should IVAs have been rising when the others have not?
There’s some information here
which shows people coming off Debt Management Plans. They have likely been switching to another option i.e. an IVA.