Personal Insolvencies and Bankruptcy in Q3 2018
A personal insolvency process is required when financial difficulties and debts become too much to handle. The purpose of an insolvency process is to form a settlement between the individual and the creditors to assess the remaining debts outstanding.
An increase in bankruptcy
A previous report from the Guardian highlighted how UK insolvencies had hit a six-year high in the second quarter of 2018. Due to this, ‘a record number of people [were] taking out individual voluntary arrangements.’ Individual voluntary arrangements are portrayed as the alternative option to bankruptcy. The arrangement is a settlement between the individual and creditors, that is formed by a licensed insolvency practitioner.
Although, the Insolvency Statistics report from The Insolvency Service highlights how personal insolvencies decreased in the third quarter of 2018, ending the six-year high. However, this decrease was largely due to an increase in bankruptcies, which are known to generate stress and be upsetting for all involved.
With bankruptcy orders increasing 1.7% and debt relief orders increasing 0.7% in the third quarter, fewer individuals have had a plan in place to pay back some or all of what is owed through an individual voluntary arrangement. At Irwin Insolvency, we assess all of your financial options before facing bankruptcy.
How we can help you
Our personal insolvency process is different for each case we work on, as we tailor our advice to your current financial circumstances.
We have an expert team of licensed insolvency practitioners who have many years’ experience of dealing with personal insolvency problems. Our friendly approach allows us to thoroughly understand your personal circumstances and empathise with the situation you are faced with.