90,930 people became insolvent across England and Wales during 2016. This represents a rise of 13.1% from 2015 and the first annual increase since 2010.
49,745 of these insolvencies were Individual Voluntary Arrangements (IVAs), which had increased by 23.2% since 2015. Likewise, there was an increase in the number of Debt Relief Orders (DROs): at 26,196, this represents an increase of 8.4%.
Curiously, this rise has occurred during a period of low interest rates and high employment. However, the cost of living continues to rise and the Bank of England has recently announced that consumer credit has risen strongly, which means that people have possibly been over-stretching their borrowings.
This news follows recent reports from the Insolvency Service that the number of companies becoming insolvent in 2016 – 16,502 – had risen by 12.6% since 2015. The fall in the value of the Pound – following the EU Referendum result – has been partly blamed for this trend.
If your, or your businesses’, finances are suffering then a confidential discussion – at an early stage – with an experienced and qualified specialist to talk through the range of options available, may well be an appropriate course of action.
Please contact us if you would like an initial consultation, free of charge.