More people were insolvent in 2017: How you can get help with your debts
The number of people who were insolvent in 2017 was up from the previous 12 months. That’s according to recent stats released by the Insolvency Service.
In 2017, 99,196 people became insolvent in England and Wales. That was a 9.4% rise from 2016, when 90,930 people became insolvent.
This was the second year in a row when the total number of personal insolvencies increased. The main reason for this was an increase in the number of Individual Voluntary Arrangements (IVAs).
We’ll explain what the 2017 personal insolvency stats mean, and why the numbers increased. And if you need to get help with debt, we’ll show you what options you have.
Personal insolvencies in 2017
Some 59,220 people started an IVA in 2017. This was the highest annual total of IVAs since the insolvency solution started in 1987.
The number of bankruptcies was slightly up too, from 14,989 to 15,082. However, the stats clearly show that bankruptcy is still a lot less common than an IVA. An IVA might be a more suitable insolvency solution for you if you’re a homeowner, as you’re more likely to be able to keep your property.
One reason for an increase in insolvencies could be that more people are now struggling with unmanageable debt. But these stats don’t include the number of informal debt solutions like Debt Management Plans (DMPs). This means they don’t give a full picture of the numbers of people unable to manage their debts.
And if the Bank of England base interest rate rises further in 2018, it’s possible we could see more people finding it difficult to cope with their borrowing.
Get help with debt
Insolvency isn’t the only option for you if you need to get help with debt. You could also consider an informal solution like a DMP. But before you start any debt solution, make sure you speak to an expert first.
If you’re currently worried about your finances, have unsecured debts from personal borrowing and would like to speak confidentially and free of charge to an advisor who can talk to you about the benefits and considerations of a range of debt solutions and personal insolvency solutions, please get in touch by calling 0800 048 1764.
You can also visit the Harrington Brooks website to request a call back at a time to suit you. By requesting a call, you are under no obligation to use our services. Harrington Brooks provide solutions to customers living in England, Scotland, Northern Ireland and Wales.
Should you choose to undertake a plan or arrangement, there may be consequences to consider, including restrictions on future expenditure, lending and on your ability to obtain further or future credit. If you do choose one of our solutions, fees, terms and conditions apply. For further information and advice please visit the Harrington Brooks website.
The services that we provide may be available at no cost from government and charity based providers. You can obtain further information from the Money Advice Service at the Money Advice Service website.