Abacus Daily Debt News

Insolvency figures to reach “historic highs”

The number of insolvencies in Britain looks set to climb throughout 2010 as those in debt begin to take their financial situations more seriously.

This is according to This is Money’s Alan O’Sullivan, who noted that insolvencies are expected to reach "historic highs" this year, despite the fact that a slight dip in official figures is likely.

He observed that the statistics will be boosted by the fact that debt relief orders and bankruptcy proceedings are easily available and the majority still appear to prefer to "wipe the slate clean" through such actions.

However, Mr O’Sullivan did state that the "onerous repercussions" of choosing bankruptcy may be avoided by many through arranging formal debt plans as an alternative.

And Louise Brittain of Deloitte predicted that insolvencies will total 145,000 in 2010.

The news source recently considered the benefits of entering into individual voluntary arrangements, suggesting it as one path that can be taken should debts amassed become "truly unmanageable".

By Sarah Adie