Insolvencies set to climb in the north-west

Personal insolvencies in the north-west of the country look set to rise in the coming year, as new research has revealed that bankruptcy and individual voluntary agreement figures for the region are up from 2008’s.

The study, conducted by RSM Tenon, has predicted that these levels could reach 18,000 in 2010, with such instances climbing by eight per cent in Manchester and 13 per cent in Liverpool, The Business Desk reports.

Furthermore, Gill Wrigley of the company forecast that the number of debt relief orders (DROs) will creep up as well, as the stigma of such solutions is dissipating and court hearings are no longer recognised.

“If the recent trend for DROs to increase to more than 400 per week continues, we could see more than 20,000 DROs in 2010,” she said.

This follows recent claims from MoneyStand.co.uk’s Matt Spencer, who stated that bankruptcy levels may be hiked because of Christmas spending and many people may be faced with “obscene” bills early in the year.

By Sarah Adie