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Thursday, 7 August, 2006
LATEST DTI INDIVIDUAL INSOLVENCY FIGURES FOR Q2 2006 FOR ENGLAND AND WALES
Key Stats
- The latest quarter shows an overall increase in individual insolvencies of 10% over the previous quarter and 66% on the same quarter last year. Correspondingly, IVAs, in particular, rose by 35% and 153% respectively.
- The total number of individual insolvencies for the year to date (Q3 2005-Q2 2006) totals 88,146, an increase of 63% over the previous full year, 54,164.
- The comparative figures for IVAs are 31,955 and 13,714, a year-on-year increase of 133%.
- For Q2 2006 IVAs represented 43% of total individual insolvencies, compared to 28% for the same quarter a year ago.
James Falla, MD of Thomas Charles, said of the latest stats: "Individual insolvencies are up 10% on last quarter and 63% on the same quarter last year. IVAs continue to grow as a proportion of individual insolvencies, currently accounting for 43%, and are set to overtake bankruptcies in the next couple of quarters. Total individual insolvencies in England and Wales for the calendar year 2006 look certain to top 100,000.
Even so, at 88,146 for the last full year, the official figures for individual insolvencies are just the tip of the iceberg. Our own research indicates 1.1 million adults in Great Britain are in some danger of becoming insolvent. The situation is here to stay and is set to grow.
Yesterday's quarter percent increase in interest rates puts added pressure on people in debt and, if unemployment and inflation continue to rise, then the situation could look very grim indeed."
If you would like to talk to James for further comment on the DTI stats or consumer debt situation please contact me via the details below, or ring James direct. His numbers are: mobile 07970 150546 and office 0870 141 7271.
James Falla is a regular spokesperson on consumer debt matters and has appeared on BBC TV News, Channel 5 News, Sky News, CNBC, Wake Up To Money and many other radio programmes.
Number of Insolvencies in England and Wales (seasonally adjusted)
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Percent age change |
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2005 |
2005 |
2005 |
2006 |
2006 |
Q2 2006 on: |
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Q2 |
Q3 |
Q4 |
Q1r |
Q2p |
Q1 2006 |
Q2 2005 |
| Individuals of Bank which: |
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15,645 |
17,793 |
20,679 |
23,653 |
26,021 |
10.0 |
66.3 |
| Bankruptcies |
11,259 |
12,182 |
13,675 |
15,418 |
14,915 |
-3.3 |
32.5 |
| IVA's |
4,386 |
5,611 |
7,004 |
8,235 |
11,105 |
34.9 |
153.2 |
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| p = provisional, r = revised |
- Ends -
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About Thomas Charles & Co Ltd
Thomas Charles & Co Ltd was set up in 2004. The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on OFEX since 2001.
Thomas Charles operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management. It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangement and Bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.
For further information, please contact:
Stewart Ross (Ross Media Relations)
Tel: 07966 540787
stewart@thomascharles.com
James Falla (Director of Thomas Charles )
Tel: 01753 570442
james.falla@thomascharles.com
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