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Personal insolvencies hit new high in Wigan
THE number of Wigan folk declaring themselves bankrupt shot up by 12 per cent in the first quarter of this year.
And latest figures show that in all there were 281 personal involvencies in the borough: which is 29 per cent higher than the same period last year.
The bankruptcy figures come from Ministry of Justice petitions and have been analysed by personal insolvency specialists RSM Tenon Recovery.
The same company has also tracked both corporate and personal insolvencies to arrive at the 281 total for Wigan in the last quarter.
These figures include Individual Voluntary Agreements (IVAs) and Debt Relief Orders (DROs).
On a national basis, the three months to March 31 2010 saw a total of 15,783 people succeed in making themselves bankrupt, with a further 2,473 people forced into bankruptcy by creditors.
This means that 86 per cent of all bankruptcies are instigated by the person themselves – the highest proportion since records began.
RSM Tenon predict that further increases will be seen and expect to see personal insolvencies, which hit a record level of 134,142 in 2009, exceed 150,000 nationally over the course of 2010.
And the trend is being mirrored by what is happening in Wigan with those struggling with debt seizing the initiative.
Gill Wrigley, a Director at RSM Tenon Recovery in the North West, said: “The rise in the number of bankruptcy petitions in Wigan goes against the national trend but will come as no surprise to the many people affected by the downturn.
“Nationally, personal insolvencies have reached record levels and are expected to continue to rise, particularly as the effects of the recession continue to impact on peoples’ finances for some time after it has officially come to an end.
“The debt lag from Christmas, and consumer debt built up over a generation are to blame for these figures.
“For Wigan, that could mean that we see a total just under 2,000 personal insolvencies over the whole of 2010.
“Although the glass has started to look half full for the economy, it’s very much been drained of every drop when it comes to individuals’ personal finances.
“Months of job losses and decreased earnings has taken its toll on the public’s purse strings. We are likely to continue to see record numbers of people look to insolvency into 2011.”
The news came in the same week that Wigan was able to show that the number of people claiming Jobseekers’ Allowance had gone down for the third month running in April.
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Comments
There are 6 comments to this article
Page 1 of 1
leviticus
Monday, May 17, 2010 at 07:37 PMI have a colleague who has gone into 'iva' status twice - he lives the life of riley eating at expensive restaurants and numerous foreign holidays every year running up huge bills on credit and then goes into an 'iva' arrangement to dodge having to pay back what he owes - he gets to keep his house each time and after 5 yrs he is debt free and immediatley starts running up debts again usually with credit cards and borrowed money. i think that iva is partly to blame for the increase in people who 'can't' pay their debts
Jimmy
Monday, May 17, 2010 at 06:41 PMOn the Right-Hand side of this page is a link called Jobs - Click on it and see how many Jobs are advertised. Unemployment will reach 15 million plus in the next 3-5 years. Taxes will rise massively as will spending cuts. New labour in their last days implemented a "SCORCHED EARTH" policy, which is just beginning to rear it's ugly head. Not one person in this country , unless they are TRAITORS, deserve this of ANY Government. How has this been allowed to happen ? Where have our Security Services been ? Do any of you remember the Special Forces helicopter crash in Scotland - ----------------------------- Security chiefs killed in air crash: 29 lost as helicopter 'explodes' off Scotland - Most of high command in war against terrorism said to have been on board - http:www.independent.co.uknewssecurity-chiefs-killed-in-air-crash-29-lost-as-helicopter-explodes-off-scotland--most-of-high-command-in-war-against-terrorism-said-to-have-been-on-board-1420006.html ............................. This is where our SECURITY FORCES HEADS WERE MURDERED. Can anyone else explain why New Labour have been allowed to comit blatant acts of TREASON and the Security Services sat back and allowed it ?
collie man
Monday, May 17, 2010 at 06:28 PMYou only have to look at the rise in expesive 4 x 4 cars recently. Either there are a lot of high earhers, fair play to them, or they are in debt to the hilt for a status symbol. People who declare bankrupty effectively pass the cost to the majority who pay their loans.
Lomra Greener
Monday, May 17, 2010 at 03:16 PMRight here enlightened one. I have seen a few boneheads adopt this tactic. Run up massive debts then declare themselves bankrupt and expect others to bail them out, house them, etc. Don't say it doesn't happen, it does. Why is there a 'debt lag from Christmas, and consumer debt built up over a generation'? Who is responsible? Who borrowed the money? I feel really sorry for those caught in a trap which is not of their own making (redundancy, business failure, etc), but the majority seem to be those who will not manage their finances responsibly. Happy now?
objective realist
Monday, May 17, 2010 at 02:38 PMwhere is Lomra to tell us he is "sick and tired" and that "it serves them right " and that they need "more punishment" ?
Ste of the Warrington Casuals
Monday, May 17, 2010 at 01:09 PMNot suprised they are going up! With bankrupt businessmen like Andy Gregory in the town!
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