New figures from the Insolvency Service have indicated the trend for such financial failures has stopped rising, but the increase in the number of wom…
New figures from the Insolvency Service have indicated the trend for such financial failures has stopped rising, but the increase in the number of women getting into trouble has continued to soar.
Data from the body showed there was a small drop in insolvencies in 2010, after the tally reached a 20-year high in 2009.
However, it also revealed the proportion of women among individuals going bankrupt continued to increase, accounting for 40 per cent in 2009, compared with 29 per cent in 2000.
Commenting on the overall situation, chief executive of the Insolvency Service Stephen Speed said: “Although personal insolvency levels are no longer rising, they remain stubbornly high, reflecting the high levels of personal debt that persist across the country.”
He advised: “Prevention is much better than cure as far as personal finances are concerned. Review your personal finances frequently and make sure you are not taking on debt that you can’t afford to repay.”
For some, however, matters will have deteriorated past the point where insolvency can be avoided and an individual voluntary arrangement (IVA) could be the best solution.
Unlike bankruptcy, an IVA can prevent an individual losing their home and is also a confidential arrangement, whereas bankruptcy can be publicised in the local press and is automatically recorded in the London Gazette.
Some people could find their debt situation has worsened due to overspending at Christmas.
Research by Sainsbury’s Finance last month found £555 million would be spent on December 24th as people sought last-minute gifts, something that could have led to many spending too much as they clamoured to fill gaps in their festive shopping lists.
By Joe White