Published 31 January 2019. By Kym Horner

A new Government report on the number of personal insolvencies in England and Wales shows a sharp increase during the final quarter of 2018.

From October to December of last year, there were over 34,000 individual insolvencies, an increase of 35% over the same period in 2017. In 2018 as a whole, the total number of individual insolvencies reached over 115,000 – the highest annual level in 7 years.

Debt experts declare that the economic uncertainty of Brexit on individual household finances may be the main cause of this increase. R3 (trade body for the UK insolvency sector) indicate that individuals are having to spend more of their income on housing and transport, leaving less left over for other expenses and savings.* Indeed, recent research also suggests that one in five UK adults would find it ‘somewhat/very difficult or impossible’ to immediately pay an unexpected bill of £20 without assistance.

The Government report also shows that an Informal Voluntary Arrangement (IVA) was the most common personal insolvency procedure used during 2018 (over 61%), followed by debt relief orders (24%) and then bankruptcy (14%).

MKB Law’s Debt & Insolvency department regularly work with individuals who are financially distressed to help them manage and address their debts. We offer expertise in facilitating payment plans both in terms of informal agreements and Informal Voluntary Arrangements. If you are experiencing debt problems, facing bankruptcy or require any debt advice, then please contact us.

To discuss any of the points mentioned in this article please contact 028 9024 2450 or info@mkblaw.co.uk

This article is for general guidance only and should not be regarded as a substitute for professional legal advice. Article sources: Guardian & Irish News