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| Personal insolvency 'record high' | Personal insolvency 'record high' |
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| The number of people who were declared insolvent in England and Wales hit a record high in the last quarter of 2009 and during the year in full. | The number of people who were declared insolvent in England and Wales hit a record high in the last quarter of 2009 and during the year in full. |
| The figures from the Insolvency Service marked the depth of the recession, with 35,574 people declared insolvent in the last three months of the year. | The figures from the Insolvency Service marked the depth of the recession, with 35,574 people declared insolvent in the last three months of the year. |
| That was a rise of 25% on the same period a year earlier. | That was a rise of 25% on the same period a year earlier. |
| The upward trend, which slowed in the last quarter of the year, was driven in part by new style Debt Relief Orders. | The upward trend, which slowed in the last quarter of the year, was driven in part by new style Debt Relief Orders. |
| These allow people with debts but relatively few assets to write off the debts without a full-blown bankruptcy. | These allow people with debts but relatively few assets to write off the debts without a full-blown bankruptcy. |
| Annual rise | Annual rise |
| Over 2009 as a whole, there were 134,142 people declared insolvent in England and Wales. This was higher than the previous record - in 2006 - of 107,288. | Over 2009 as a whole, there were 134,142 people declared insolvent in England and Wales. This was higher than the previous record - in 2006 - of 107,288. |
| FORMS OF INSOLVENCY Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditorsIndividual voluntary arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of yearsDebt Relief Orders: Introduced in April 2009, these allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy Coping with personal insolvency Dealing with company insolvency | FORMS OF INSOLVENCY Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditorsIndividual voluntary arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of yearsDebt Relief Orders: Introduced in April 2009, these allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy Coping with personal insolvency Dealing with company insolvency |
| The number of personal insolvencies only crept up by 332 in the final three months of the year, compared with the previous three months. | The number of personal insolvencies only crept up by 332 in the final three months of the year, compared with the previous three months. |
| This was made up of 17,007 bankruptcies - down 5.5% on the same quarter of the previous year, 13,219 Individual Voluntary Arrangements (IVAs) - up 26.3% on the corresponding quarter of the previous year, and 5,348 Debt Relief Orders - which were introduced in April. | This was made up of 17,007 bankruptcies - down 5.5% on the same quarter of the previous year, 13,219 Individual Voluntary Arrangements (IVAs) - up 26.3% on the corresponding quarter of the previous year, and 5,348 Debt Relief Orders - which were introduced in April. |
| Record low interest rates would have staved off insolvencies for some people, but long-term unemployment would make it difficult for others to avoid the situation. | Record low interest rates would have staved off insolvencies for some people, but long-term unemployment would make it difficult for others to avoid the situation. |
| However some experts have suggested that there will be more pain to come despite the UK coming out of recession. | However some experts have suggested that there will be more pain to come despite the UK coming out of recession. |
| "We expect to see the numbers continue to rise as the upwards trend in personal insolvencies traditionally continues for nearly three years after the worst of a recession has passed," said Pat Boyden, from accountancy firm PricewaterhouseCoopers. | "We expect to see the numbers continue to rise as the upwards trend in personal insolvencies traditionally continues for nearly three years after the worst of a recession has passed," said Pat Boyden, from accountancy firm PricewaterhouseCoopers. |
| Business picture | Business picture |
| In the last quarter of 2009, the number of companies going bust fell by 7% to 1,465, compared with the previous quarter. | In the last quarter of 2009, the number of companies going bust fell by 7% to 1,465, compared with the previous quarter. |
| The figures continued the downward trend in receiverships, administrations and company voluntary arrangements which has been seen during the past year. | The figures continued the downward trend in receiverships, administrations and company voluntary arrangements which has been seen during the past year. |
| Even so, 2009 as a whole still saw a record number of companies being declared insolvent with an annual total of 6,355, a 1% increase on 2008. | Even so, 2009 as a whole still saw a record number of companies being declared insolvent with an annual total of 6,355, a 1% increase on 2008. |
| The number of companies being liquidated - the end stage of the insolvency process - fell in the last three months of 2009. There were 4,566 company liquidations, down by 2% on the previous quarter and 1% fewer than a year earlier. | The number of companies being liquidated - the end stage of the insolvency process - fell in the last three months of 2009. There were 4,566 company liquidations, down by 2% on the previous quarter and 1% fewer than a year earlier. |
| For the whole of 2009, the number of firms being liquidated rose to a record 19,077, a rise of 23% compared with the previous year. | For the whole of 2009, the number of firms being liquidated rose to a record 19,077, a rise of 23% compared with the previous year. |
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