There have been a record number of bankruptcies across England over the past 6 months. According to an article published by BBC, there have been a record 19,062 bankruptcies and 10,713 individual voluntary arrangements (IVAs) over the past three months of 2009.
The following graph was taken from BBC.
The graph shows that there have been rises in orders of bankruptcies, insolvencies, and voluntary agreements. From this graph you can see that this trend has gone back becore the global economic downturn was showing up in actual markets.
For an FYI, these are terms BBC have explained from the article.
Bankruptcy : The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditors
Individual voluntary arrangement (IVA) : A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of years
Debt Relief Orders : Introduced in in April 2009, these allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy
Individual voluntary arrangement (IVA) : A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go or over a number of years
Debt Relief Orders : Introduced in in April 2009, these allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy
In the first quarter (first three months) of 2009 there were 29,774 personal insolvencies in total, 1.6% up on the previous quarter and 19% up on a year ago throughout England and Wales.
There were 1,783 corporate insolvencies such as receiverships and administrations in the first three months of the year, 27% fewer than in the last quarter of 2008. There were 4,941 compulsory liquidations and creditors' voluntary liquidations.
That was 7.1% more than in the previous three months, and 56% more than a year ago (from BBC). This is scary for many people living in England, but the same thing is happening all around the globe. From 1999, the amount of bankruptcies in England were steady, most of which as the same rate for several years. Then around 2003, the rise started. Even though the recession was not really felt until last year, the large number of bankruptcies in 2006 show that the downward fall could have started much earlier than the job markets and stock markets felt the recession hit. Numbers shown for the UK would be interesting to see the relationship of bankruptcies in the US markets.
That was 7.1% more than in the previous three months, and 56% more than a year ago (from BBC). This is scary for many people living in England, but the same thing is happening all around the globe. From 1999, the amount of bankruptcies in England were steady, most of which as the same rate for several years. Then around 2003, the rise started. Even though the recession was not really felt until last year, the large number of bankruptcies in 2006 show that the downward fall could have started much earlier than the job markets and stock markets felt the recession hit. Numbers shown for the UK would be interesting to see the relationship of bankruptcies in the US markets.
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