February 15, 2010 03:00 ET

Record Personal Insolvencies in 2009

MANCHESTER, UNITED KINGDOM--(Marketwire - Feb. 15, 2010) - Statistics released early on in February confirm that a record number of people became insolvent in the UK during 2009.

134,142 people were affected in the UK, the total figure comprising of individuals who became bankrupt, entered into an Individual Voluntary Arrangement or entered into the relatively new Debt Relief Order, launched in April 2009.

The statistics are hardly surprising in light of the recent severe recession and consequential increase in unemployment figures. While the recession has now formally ended, experts advice that the effects may remain for some time to come. Unemployment is still at a high and consumer confidence has yet to return to normal levels.

47641 individuals took out an IVA in 2009 and while this indicative of a personal debt crisis, debt advice experts at MoneySolve believe that such alternatives to bankruptcy are fundamentally a positive thing for consumers, commenting that; "Those 47000 people might have found themselves bankrupt were it not for the existence of the IVA. An IVA affords those people who can make some form of repayment, the opportunity to do so and to therefore avoid bankruptcy. While avoiding bankruptcy certainly isn't possible in every case, the IVA and Debt Relief Order mean there is at least an alternative route for some."

The particularly high figures for 2009 are expected to be beaten again during 2010, with experts forecasting a continuing battle against high personal debt in the UK.

Contact Information

  • MoneySolve
    Elizabeth Beesley
    01625 544789