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Debt Articles

• Britain’s Elderly More at Risk of Debt Problems through Inflation
• Millions of Brits Admit to Neglecting Their Finances
• Fall in Personal Insolvencies in England and Wales for First Quarter of 2011
• Debt Problems Mean Millions of Middle-Income Brits Can’t Afford a Summer Holiday
• Signs of Compulsive Debting
• Coping With Debt
• Debt Collection Vs Debt Management
• Males are Less Likely to Seek Help with Debt
• Bankruptcy Is On The Rise For The Middle Class
• How To Settle an IVA
• People should start saving for retirement asap to avoid debt
• Student Fees Could Increase Debt
• Wrong Mobile Phone tariff could be wasting money
• Household Debt Causing People to Dip Into Savings
• Brits Avoid Summer Holidays Due to Debt
• Increases in Debt for UK Families

Fall in Personal Insolvencies in England and Wales for First Quarter of 2011

There were fewer declarations of personal insolvency in England and Wales in the first three months of 2011, it has been announced.

Figures released by the Insolvency Service reveal that there were just over 30,000 personal insolvencies in the first quarter of the year, a reduction of 1.7 per cent from the previous quarter, and the fourth quarter in a row where personal insolvencies have fallen.

The personal insolvency figures for the first quarter of 2011 are 15.5 per cent down on the same period in 2010, a year in which personal insolvencies reached a record high, although figures dropped as the year progressed.

Frances Coulson, president of the insolvency professionals trade body R3, said about the figures: “Our research shows that, against the backdrop of increased living costs and falling income, four in five consumers have changed how they shop in a bid to save money. A further drop in personal insolvency may signal that the reining in of domestic belts is starting to pay off.”

There are three different forms of insolvency for those who are struggling with their finances; bankruptcy, Individual Voluntary Arrangement (IVA) and Debt Relief Orders.

Bankruptcy, the most traditional method of escaping crippling debt, is a 12-month measure which involves individuals losing most of their assets in order to pay their creditors. An IVA is a deal between the individual and their creditors to pay back the debt, either in one go or over a number of years, and is overseen by an insolvency practitioner.

The most recent form of insolvency is a Debt Relief Order, which was introduced in April 2009, and allows individuals with less than £15,000 of debt and minimal assets to write off their debts without having to resort to a full-blown bankruptcy deal.

In the first three months of 2011, the number of people declaring bankruptcy or choosing an IVA fell compared to the same period in 2010, although the number of Debt Relief Orders issued was up by around 20 per cent.