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Bankrupcies expected to reach highest levels since 2014

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People going bankrupt across the UK is predicted to soar to the highest levels since 2014, according to official figures.

The Insolvency Service are to release their personal insolvency figures on Tuesday for the fist quarter of this year.

These are made up of three types, debt relief orders (DROs) that are aimed for people with lower debt levels, then individual voluntary arrangements (IVAs), this is where money is shared amongst creditors and then bankruptcy.

Audit company RSM has predicted total personal insolvencies for the quarter is to exceed 30,000 cases, this includes 6,945 DROs, 19,000 IVAs and 4,455 bankruptcies.

Should these number be correct this will be the highest quarter total since the fourth quarter in 2014, also if the 30,000 personal insolvency cases are also correct, this will be the highest quarter since 2011.

Alec Pillmoor, a personal insolvency partner at RSM said, “We anticipate personal insolvencies will continue to increase and predict we will see the highest total figures for quarter one for eight years.

“Retail sales figures show sustained growth throughout the first three months of the year, and, despite the number of people in work, and increasingly full-time work, continuing to grow, the renewed confidence amongst consumers in their spending power is likely aided by borrowing and consumer credit.”




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