Approximately 90,000 people entered formal insolvency during 2016. This is the first time we have seen an annual increase since 2010.
The figures include 49,745 Individual Voluntary Arrangements, which is an increase of 23 percent year-on-year. IVAs were the main driver of the annual rise though an overall bounce in IVA levels since a low point in the middle of 2015, now appears to have slowed down.
There were also 26,196 debt relief orders (DROs) during 2016 (an 8 percent annual increase). Generally, the numbers of DROs have flattened out, after a small rise when the barriers to entry were relaxed.
In contrast there were 14,989 bankruptcies during 2016, a 5 percent drop, compared to a year earlier.
Nevertheless, the extent of personal insolvency remains masked by the lack of reliable statistics on informal debt arrangements.
Source: Insolvency News
If you are struggling with personal debt, we at T H Financial Recovery offer free, no obligation consultations to discuss and explain your options. We do not judge, we just offer friendly, professional advice.
Give us a call on :01282 332222