Since 2017 personal insolvencies have risen 16.2% in England and Wales, due to the increase in unmanageable debt. With the total number of insolvencies increasing for the third consecutive year to 115,229. With it being said that the 19.9% increase on individual voluntary arrangements (IVAs) has driven this increase.
Low unemployment levels are said to be contributing towards the increase in IVAs, due to a regular income allowing for regular debt repayments to be arranged. This being said, whilst more are finding employment, the nature of employment has changed. With unpredictable working hours and a lack of well-paid roles. These two factors are both contributing to the rising figures.
Furthermore to the above, savings levels are also very low. Recent research from R3 and ComRes found that one in five British adults would struggle to pay an unexpected bill for an amount as little as £20. With weak consumer demand also being evidenced, corporate insolvency has also seen an increase to 16,090 in 2018, the highest level since 2014.
Individuals are advised to seek a regulated and reputable debt advisor, should they find themselves with debt worries. Whilst corporations should seek a licensed insolvency practitioner.
We are a licensed insolvency practitioner based in Plymouth, St. Austell, Truro and Penzance. If you need any advice regarding insolvency or related issues please get in contact with us.