Insolvencies rise for the first time in a year

The report shows the rise has been driven by an increasing number of people choosing to enter into Individual Voluntary Arrangements to repay unmanageable debts. These formal arrangements, managed by a licensed Insolvency Practitioner, increased by 9.3% compared to Q2 2015.

James Jones, head of consumer affairs at Experian, commented:

“It is always sad to see the number of people facing insolvency climb, but the rise in the number of IVAs can be seen as a positive sign, with more people facing up to their financial issues and taking steps to deal with mounting debt repayments.

“Simple steps like discussing problems with lenders, making shrewd choices about future credit applications and rebuilding a positive credit history form a key part of this recovery, and informal and formal agreements can be the first step in this journey.

As a public record, an IVA will stay on your credit report for at least six years, and will also be entered onto the insolvency register; however, there is light at the end of the tunnel and with some patience and the proper guidance it is possible to recover and get back on track after a period of financial difficulty.”