Personal Insolvency in UK Rises By 28%


A record number of people were declared insolvent in England and Wales in the third quarter of 2009, according to figures from the Insolvency Service, the BBC reported. There were 35,242 personal insolvencies, up 28% from the same period last year and an increase of 6.6% on the previous three months. This extended the record number which was reported earlier this year. The record numbers are due in part to the number of people who have found themselves out of a job during the recession, but with debts to pay off. This was coupled with the onset of the credit crunch, which drew back the amount of cheap credit available and meant some were unable to borrow their way out of immediate debt problems. The flat housing market also prevented them selling their homes, or drawing on equity. Read more.