07-05-2010
Personal insolvencies on the rise
There were 35,682 individual insolvencies in England and Wales in the first quarter of 2010. This was an increase of 17.9% on the same period a year ago, show first quarter statistics published today by the Insolvency Service
INDIVIDUAL INSOLVENCIES
This was made up of 18,256 bankruptcies (which were down 10.7% on the corresponding quarter of the previous year), 11,782 Individual Voluntary Arrangements (IVAs), (which were up 20.1% on the corresponding quarter of the previous year) and 5,644 Debt Relief Orders (DROs).
Steven Law President of R3, the insolvency trade body, comments:
"Today's increase in personal insolvency is as expected as the debt hangover filters through to official insolvency statistics and unemployment increases. However, there remains something of a 'debt iceberg' with many more people in unrecorded Debt Management Plans which are not included in today's statistics. According to estimates by R3 this could amount to 500,000 people, more than double the number in formal insolvency procedures.
"Below them, under the waterline are another 574,000 who are struggling financially but have contacted their creditors informally. More worrying are another group further down comprising of 961,000 individuals who are struggling with debts but have not sought help. This group could find themselves in formal insolvency procedures unless they take swift action."
Source: Debt Introducer.com 7th May 2010
Keith Hargraves Principal of The Equity Release Centre commenting on these figures says, "These figures come as no surprise as we are witnessing an increase in the increase in the number of calls we are receiving from retired parents enquiring about releasing equity to help their children out of debt problems".
If you have children who are struggling and would like to help them but haven't the money, could equity release be a solution? Why not call us on FREEPHONE 0800 970 4883 to find out.
The Equity Release Centre, experts on equity release schemes.
"Equity release" refer to home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
For researching and arranging a scheme for you we will charge a fee on completion, usually 1.5% of the amount released or facility arranged, with a minimum of £895.