The Insolvency Service has just released the latest figures for the final quarter of 2017 which allows us to analyse the full calendar year of 2017.
In 2017, 1 in 467 adults became insolvent (either entered into bankruptcy or an Individual Voluntary Arrangement (IVA)).
Total insolvencies rose for the second year running, largely driven by Individual Voluntary Arrangements (IVA’s) which reached the highest recorded annual total.
The number of people who became insolvent in England and Wales in 2017 was just short of 100,000 people, which was a 9.4% rise on 2016.
Of the 99,196 insolvencies, 59.7% entered into Individual Voluntary Arrangements (IVA’s), 25.01% into Debt Relief Orders (DRO) and 15.2% into bankruptcy.
There were 59,220 Individual Voluntary Arrangements (IVAs) in 2017, which is an increase of nearly 20% on 2016.
In 2017 there were just over 15,000 Bankruptcy Orders, which is only a slight increase on 2016. However, Debtor’s Bankruptcy Petitions increased by nearly 6% while Creditor Petitions fell by nearly 16%.
My opinion is that personal insolvencies will, most probably, continue to increase in 2018 as the environment continues to be challenging for both businesses and individuals, most notably due to Brexit uncertainty. Individuals and households should pay close attention to cash flow and debt levels and seek professional debt advice as early as possible if they encounter money or problem debt issues. Free debt advice is always available and the sooner debt advice is sought the more options tend to be available with regards to possible insolvency solutions for individuals.
If you are experiencing money or debt worries or concerns or even if they require some money/debt management advice prior to the issue becoming a problem then please don’t hesitate to contact me. Free advice is offered at all times! Call 0845 287 0939 or contact me by email.
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