Personal insolvencies rise

There has been a sudden jump in the number of individuals becoming insolvent, amounting to the steepest rise in more than four years. Figures from the Insolvency Service show that 27,029 people in England and Wales became insolvent between April and June. That is a 5.1% increase on the same period in 2013. However, the number of people declaring insolvency in Scotland, where the law is different, fell to its lowest level since 2005. The Insolvency Service said the increase in England and Wales was driven by a 20% rise in the number of IVAs. “As the economy starts to grow, people feel more confident about dealing with a five year repayment plan,” said Andrew Tate, the deputy vice-president of R3. The number of people taking out IVAs in the last quarter rose to 14,571, the highest number since they started. The rate of insolvency has also increased for the first time since 2010, with 0.2% of the adult population declaring themselves insolvent.
Source: The Daily Telegraph (30/07/2014)