According to the Insolvency Service’s figures, personal insolvencies in England and Wales dropped 11.3% in 2011 compared to 2010 figures. Bankruptcies registered the steepest drop plummeting by 29.3% from the previous year and Individual Voluntary Arrangements fell by 2.3%. Debt Relief Orders did increase by 15%.
Despite the overall fall in the number of personal insolvencies in England and Wales, there remain areas of society where financial distress is on the increase. Credit reference agency Experian is reported to have found that “middle class suburbanites” which includes mainly married or middle aged people with children accounted for 10.93% of insolvencies which was up from 10.37% in 2010.
Whilst it is positive that the overall figures for personal insolvency are on the decline, there remain people that are struggling financially. According to money charity Credit Action, the average household debt excluding mortgage repayments was £7,900 in December 2011.
Professional help should be sought at the earliest opportunity where individuals are concerned about their financial position.
By commercial solicitor, Nicola Whittle