Debt and insolvencies 'to rise in 2008'

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Debt and insolvencies 'to rise in 2008'

Fri 11th Jan 2008

The number of personal insolvencies is likely to rise this year, according to a debt counselling service.

James Falla of Thomas Charles said that there is currently a lot of discussion about the potential for an increase in individual voluntary arrangements (IVAs) and individual insolvencies in 2008.

He cited statistics from KPMG from December which forecast a 30 per cent jump in insolvencies for the new year.

After agreeing with the debt predictions, Mr Falla suggested that it would be "interesting" to see the breakdown of how many people opt for bankruptcy, IVA or other types of debt management plans.

"Because debt management is not regulated and not a single procedure, there is no central registrar of debt management plans," he added.

There were 26,956 individual insolvencies recorded by the Insolvency Service in England and Wales during the second quarter of 2007.

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