The Insolvency Service has today announced that the number of people declaring unmanageable debts in England and Wales has risen by 22 per cent, to 22,503.
Although the past 12 months have seen a rise, the level of insolvencies is still relatively low due to the favourable interest rates which are expected to remain for some time.
The favourable interest rates are expected to limit the figures of people falling back on their loan repayments.
The rise in personal insolvencies can be partly attributed to the 15 per cent increase in Individual Voluntary Arrangements (IVA). IVAs enable those in debt to come to an agreement with the debtors on the terms of repayments.
At the same time figures of people whose homes are at risk through declaring bankruptcy have dropped.
Scotland experienced a 50 per cent rise in individual insolvencies as Northern Ireland saw an 8.5 per cent rise.
The Insolvency Service is the regulator for the UK insolvency profession. It provides information about Bankruptcy, IVAs, and DROs.
If you are either a business or an individual struggling to repay your debtors get in touch with us on 0175 321 6399 today. At Stephensons we provide the best possible legal advice and will find the solution to suit your specific needs.