Insolvencies up 8% in Q4 2008

The number of people declared insolvent in England and Wales rose by 8.2% in the final quarter (Q4) of 2008.

Released on Friday, the latest figures from the Insolvency Service have confirmed that the number of insolvencies had indeed risen at the end of the year.

The number of bankruptcies rose from 17,451 in Q3 to 19,100 in Q4 – a rise of 9.4% – bringing the annual total to 67,428 bankruptcies.

The number of IVAs (Individual Voluntary Arrangements) also rose, going from 9,766 in Q3 to 10,344 in Q4. This was a 5.9% increase, and brought the annual total of IVAs to 39,115.

In all, 106,543 people were declared insolvent last year.

“Looking ahead, 2009 is clearly going to be a difficult year,” said a debt management expert for Gregory Pennington, “which makes it even more important for people to seek professional debt advice as soon as they realise their debts are getting out of control.

“Some people may discover that insolvency is, in fact, the best way for them to put their financial problems behind them – but many others will be able to avoid insolvency if they just take action in time.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.