Potential for Increase in Personal Insolvency

Posted 2008-01-6

Predictions that personal insolvencies could increase this year may be accurate, according to one industry expert.

 

The number of persons declaring themselves insolvent in 2008 is likely to rise, says James Falla, director of advice service Thomas Charles & Co., proving experts right.

 

Rising debt levels have gained wide attention recently.  Mr. Falla points to data collected by KPMG that suggests a 30 percent increase in the number of personal insolvencies this year.

Mr. Falla points out that personal insolvency may take one of three forms:  bankruptcy, individual voluntary arrangements (IVA), or informal debt management plans.

 

While it is possible to find statistics on bankruptcy and IVAs, data about informal debt management plans is not available.

 

Some people trying pay back loans may find an answer in debt consolidation loans, according to the price comparison firm uSwitch.

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