Abacus Daily Debt News

Number Of People Going Bust On The Decrease

The number of people declared insolvent in England and Wales fell slightly in the 2nd quarter of 2008. Being declared insolvent mean become bankrupt or entering into an IVA.

Individual insolvencies are at 24,553, which was 2% down compared with the previous three months and 8.3% below the same period in 2007.

Of these, 15,297 were bankrupts, down 1.3% on the previous 3 months and a decrease of 5.7% on the same quarter in 2007.

The rest 9,256, were IVAs, down 3.2% on the previous three months and a 12.4% dip compared with a year ago.

The credit crunch is restricting the ability for consumers to build  up large debts as lenders close ranks.

Another reason for the reduction is then more people are choosing debt management, also know as an informal agreement.

One (you could say) positive note of the credit crunch is that is being credited with contributing to a reduction in the number of divorces. People are can’t afford to split up anymore! However, joking aside, other than the lost of income, the breakdown of a relationship is the single biggest factor which can  turn a manageable debt into financial crisis.