Predictions of More Personal Insolvencies ‘Are Right’

Posted 2008-01-6

Advice service experts are agreeing with well-publicised estimates of an increase in personal insolvencies this year.

James Falla, director of advice service Thomas Charles, says talk of an increase in the number of people declaring themselves insolvent is likely to prove true through 2008.

Mr Falla said “everyone’s talking” about rising debt levels, and cited KPMG research predicting a 30 per cent rise in the number of personal insolvencies in 2008.

However, he also added personal insolvency can be either bankruptcy, individual voluntary arrangements (IVA) or informal debt management plans.

The director also says that while bankruptcy and IVAs can be measured, there is no way to assess how many debt management plans are undertaken in any given 12 months.

Price comparison sites like uSwitch.com have suggested debt consolidation loans as one option for those looking to repay debts this year.

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