Raise in Insolvencies

[rayb]

Hi,

Just read this on Yahoo - interesting but not surprised:

The number of people declared insolvent in England and Wales hit a new record high during the third quarter of the year, official figures have shown. Skip related content
A total of 35,242 people became insolvent in the three months to the end of September - up 7% on the previous quarter and 28% on a year ago, according to the Insolvency Service.

The number of company liquidations - in which a firm is wound up and its assets sold off - stood at 4,536 in England and Wales, although the pace of growth slowed sharply for the second quarter in a row.

The individual insolvency figures were again the highest since records began in 1960 as the economic woes continued to take their toll.

But there was some hope for an improved picture as the level of quarter-on-quarter growth slowed slightly from 9% in the three months to June.

The number of personal bankruptcies - at 18,347 across England and Wales - also eased by 3% on a quarterly basis, marking a fall for the second straight quarter.

But this is partly thought to be down to take-up of the Government's recently introduced Debt Relief Orders (DRO), which were launched on April 6 as an alternative to bankruptcy.

Take-up among those eligible for DROs - people with debts of less than £15,000, assets of less than £300 and less than £50 surplus income a month - more than doubled to 4,505 in the third quarter.

DRO figures were particularly low initially due to orders taking longer to process than expected, which led to a backlog that only began to clear in the third quarter.

The Insolvency Service statistics also revealed that the number of people taking out an individual voluntary arrangement (IVA), under which interest on debt is frozen in exchange for a set amount being repaid each month, leapt by 21% year-on-year to 12,390, again the highest level since the final quarter of 2006.

[kallis3]

Saw it on BBC news - are we really surprised?

[size5]

Not surprising at all, and my own view is that there is more to come. The true effects of the economic situation have yet to be felt I fear.

Regards.

[kallis3]

I totally agree with you on that one.

[Declan at DebtFreeDirect]

I agree with size5, I can see the next quarter and subsequent quarters showing more and more insolvencies.

[Michael Peoples]

Given the collapse in house prices and the extremely tight budget guidelines bankruptcy has certainly become more attractive. Undoubtedly IVAs are reducing as a percentage of insolvencies and this really is a trend that I think the banks would wish to reverse.

[orchid5]

I was watching homes under the hammer today and some chappy brought a house in devon for £500,000 with the intention of building on the plot, this he subsequently did after wrangling with the planning department for 3 years, he finally got the permission but of course since then the housing market has had a massive downturn. So his newly built 9 flats are now empty, however each one is up for around £250,000 each. I wouldn't like to be in his shoes in all honesty and do wonder if he is able to sleep at night.

[nomoremoney]

You have people on D.M.P that will join the Insolvency list soon. So those stats from IS Exchange are incomplete.The country is skint as M and S Boss saids.Skint! I say it again.

It's an unenviable position to be in debt,whether you are a government[worse],company or an individual. The 'debt trap' will get you. As Sir Alan recently said in Manchester to businessmen[85% of them],"...stop moaning about not able to borrow, you need a IP not a Bank loan'

In debt you can't spent and invest like others can.But as the whole world is in crisis it makes this rotten pie easier to swallow. You can do a lot in five years but with debt you can't do much but to watch Sky.

UK Recession,last 4 infact,can takes anything between 3 or 4 years to recover to the norm.It may chose to not return to + territory this time.The lessons from the past were never learnt. BONUSES are now back, 95% home loans too. And we are only in the first 16 months of this Recession.

I give those responsible the 2 finger salute

[Cath]

I'm not surprised either.

And all this talk of quantative easing surely is only going to make matters worse and push up inflation. How can they just print money and lend it to (probably) already deperate people when there is no money!

[MRBLUESKY]

totally agree with size 5,i fear the worst is yet to come regarding insolvencies.the bubble has,nt burst yet.

[PELDER]

Ahhh, All the pessemists amongst you! I'm far more worried about global warming and the measures we must all take to play King Canute and turn the tide!

[MRBLUESKY]

hi pelder global warming will take its toll,the human race is at risk,but the earth will repair itself through mother nature.

[Skippy]

Regarding the end of the recession I am surprised that things haven't yet improved with the economy. The company that I work for has been caught by surprise at how many order we are now getting, to the point that we are rehiring. We've got more orders than we can cope with, and they are trying to get back a lot of the staff that were laid off.

[mikepapa]

Good grief,, its all doom & gloom,, Global warming is a natural event that we as humans are speeding up a little,, nothing we do will stop it. But I am sure that the government of the day will find a way of taxing us over it. The UK as a country is only responsible for 2% of all CO2 emmisions on the planet,, so who are we kidding.
we never look at the big picture, everything on this planet goes in cycles, summer to winter,, warming & cooling,, we can measure the seasons in a year but if the global warming cycle is 50,000 years,, how can we know.
We have super volcanos under the earth,,, no one knows when they last erupted,, but they will erupt again & when they do we will plummet into another ice age because the ash will block out the sun for years,, this has all happened before & will happen again in a few thousand years time.
There you go,, doom & gloom on a big scale,,LOL,, makes your debts insignificant doesnt it.![:D]

[Skippy]

Well said Mikepapa! The planet has always gone through changes - surely even this government couldn't blame the motorist for the Ice Age!