2011 saw welcome fall in the number of people made bankrupt in England and Wales
3rd February 2012
119,850 people were declared insolvent in England and Wales during 2011, according to the latest figures from the Insolvency Agency, a fall of 11.3% when compared to 2010.
For the first time, the number of people entering into an
Individual Voluntary Arrangement (IVA) outnumbered the number of people being made bankrupt. An IVA
is a formal agreement to pay part or all of your debts over an agreed period of time and it accounted for 49,056 insolvencies during 2011. The number of people made bankrupt totalled 41,845 - down 29%.
There was a also a big rise in the number of Debt Relief Orders (DRO) issued in 2011 - 28,949 in total. A DRO is an alternative to bankruptcy for those on low incomes with debts of less than £15,000 and with few assets.
Not such good news is the fact the number of businesses that went bankrupt in England and Wales during 2011 was up on the previous year. 16,871 businesses went into liquidation (up 5%) while a further 4,972 businesses entered into receivership, administration or a company voluntary arrangement.
There were 4,664 personal insolvencies in Scotland during October to December 2011, according to the latest statistics from AIB, bringing the total for the year to 11,112. This compares to 20,329 for 2010.
Someone in the UK is made bankrupt every minute of the working week
16th January 2012
Someone in the UK is made bankrupt 60 seconds during a typical working day, according to new figures from national money education charity, Credit Action.
Credit Action's snapshot of personal finance for January, 2012 reveals that every day in the UK:
* 331 people are declared insolvent or bankrupt
* 1,779 Consumer County Court Judgements (CCJs) are issued
* 193 mortgage possession claims are issued and 153 mortgage possession orders are made
“Our ‘day in the life’ statistics show the sheer scale of the financial problems faced in the UK and illustrate the numerous ways in which we are all vulnerable to the economic downturn," said Michelle Highman, CEO of Credit Action.
"However, there are ways to take control of your financial situation. If you do find yourself in a situation where your debts are already out of control, make sure you seek free debt advice from services such as the CAB or the Consumer Credit Counselling Service (CCCS).”
400 Scots could go bankrupt every week in 2012 warns report
4th January 2012
Accountancy firm PKF is warning that more than 20,000 people will be declared bankrupt in Scotland in 2012 because of the economy and rising unemployment. That equates to 400 personal bankruptcies a week.
2011 saw an increase in the number of Scots entering into sequestration, the Scottish legal term for bankruptcy. There was also a rise in Protected Trust Deeds entered into. Both trends are likely to to continue into 2012 according to the report by PKF.
“There was a widespread assumption that in 2011 the economy would start to show signs of recovery and that personal insolvencies would stabilise, albeit at an extremely high level," said Bryan Jackson, corporate recovery partner with PKF. "However, the fluctuations in the economy, the difficulties in the Eurozone, and the clear impact of public sector cuts, is increasing the number of Scots facing financial difficulties.”
PKF is also predicting that around 1,300 Scottish businesses will go bust in 2012.
Bankrupt women reach record levels
15th August 2011
Women now account for 48% of personal insolvencies – believed to be the highest ever according to figures from RSM Tenon, the UK’s 7th largest accountancy and professional services firm.
In the second quarter of 2011, 14,827 women were declared bankrupt, obtained a debt relief order or took out an Individual Voluntary Arrangement (IVA).
Women now outnumber men in the youngest age groups (18-25 and 26-35) showing that this trend is set to continue into the future.
“People blame female money troubles on almost everything from a culture of consumption to alleged ‘bankruptcy role models’ such as Kerry Katona," said Mark Sands, Head of Personal Insolvency at RSM Tenon.
"However, the picture is more complicated than that. On the one hand, spending habits and attitudes to debt have changed over the past generation at the same time that women have achieved ever greater levels of financial independence. As women become more and more independent, lenders see them as a more and more lucrative market. On the other hand, the recent rise in the proportion of female insolvencies began in the second quarter of 2009 and the figures have climbed steadily ever since. So, arguably the UK’s recent financial crisis has hit women’s pockets harder than men’s."
"Certainly, in the early part of the recession, more women than men were made redundant, and some studies have claimed that government spending cuts instituted during the recovery period have a disproportionate effect on single parents – nine out of ten of whom are female. Also, more women than men work part-time, and in a downturn, part-time and shift workers are more likely to be cut.
"So, across the board, women are caught in a pincer movement which leaves them more vulnerable, either to sending themselves into insolvency by financial mismanagement, or to being forced into insolvency by poverty."
Number of people declared bankrupt down in first quarter of 2011
Bankrupt Essex man jailed for hiding assets
Personal insolvency figures down in Scotland for last quarter of 2010
Insolvency Service has last laugh as comedian sent to jail for breaching bankruptcy rules
Changes to Debt Relief Orders will help more people struggling with debt
Insolvency Service cracks down on bankrupts who try to hide assets
Home repossessions at highest level since 1995
2009 - the worst year for personal insolvencies since records began
24,000 more Scots to go bankrupt during 2010
Time called on former landlords who fled to Spain
Bankruptcy to be available online and by post under Government proposals
Bankruptcy numbers hit new high in England and Wales
Bankruptcies rocket in Scotland with introduction of LILAs
One out of every 290 mortgage holders see homes repossessed in 2008
Almost 20,000 individuals declared bankrupt in last quarter of 2008
Advice agencies struggle to cope with rising number of middle class debt problems
35% rise in numbers seeking mortgage arrears help
Number of CCJs issued hits ten year high
Bailiffs to get more powers but not regulation Citizens Advice warns
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The alternatives to bankruptcy
Being made bankrupt is still very much the last resort for those who find themselves in serious debt with little or no hope of being able to repay the debt.
But even if your debt is spiraling out of control, there are alternatives to bankruptcy. more
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If you have looked at all of the options and are considering filing for bankruptcy in England and Wales, here's our step by step guide on how to make yourself bankrupt. 
