Growing Levels of Personal Insolvencies, Why?

Figures released in the Insolvency Service today show that personal insolvencies reached their highest levels since 2011, with Individual Voluntary Arrangements at the highest annual level recorded. We expect insolvencies to stay at this high rate throughout 2021 and 2021, fuelled by high consumer lending and also the forceful marketing of companies offering personal insolvency like a debt management solution.

Research we've conducted reveals major misperceptions round the consequences of personal insolvency. Nearly three in ten individuals don't realise that entering personal insolvency could affect their use of rental accommodation, on the quarter of people don't know it may affect their eligibility for a bank account, and nearly 1 in 5 Brits think it wouldn't influence remarkable ability to gain access to a mortgage.

The survey also shows individuals don't realise the impact on their access to other everyday services, for instance three in five Brits believe there would be no issues in accessing utility services for example electricity, gas, or TV and broadband services.

There's wholesale confusion in regards to the consequences of private insolvency. Getting into an IVA is documented on your credit report for six years and can make it a hardship on you to definitely be accepted to rent agreements, a mortgage or banking account, along with other services like utilities. It's rarely a decision to become taken lightly.

While an IVA serves an invaluable purpose when someone's finances has spiralled unmanageable, we urge anyone experiencing financial pressure to find help from their creditors or free independent money advice in an initial phase so alternative solutions can be explored. The federal government consultation on increased breathing space and Statutory Debt Repayment Plan closes today, and is designed to provide more support for consumers. The more we publically debate debt and ways to keep it in check, the greater the outcomes is going to be for individuals, businesses and the economy in general.