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Insolvency on the rise says report
08/05/2008 10:19:00
The number of insolvencies recorded in England and Wales is increasing, according to the results of a new survey.
Findings from a study by the Insolvency Service showed that 25,264 consumers either declared themselves bankrupt or entered an Individual Voluntary Arrangement (IVA) during the first quarter of 2008.
The data represented a 1.7 per cent increase on the figures for the previous quarter but a decrease of 13.2 per cent compared with the same period last year.
Charles Turner, director in the business recovery services practice at PricewaterhouseCoopers, said: "Consumers need to realise the consequences of entering bankruptcy or an IVA and the wide ranging impacts it can have on their lives."
Problems include not getting a mortgage, being unable to make routine purchases and using credit and debit cards where there may be no practical alternative, he continued.
The figures saw more than 15,000 consumers entering into bankruptcy which is a 0.1 per cent rise on the previous quarter.
Meanwhile, an online study from Equifax predicts that 130,000 consumers will be declared bankrupt by the end of the year.
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