R3, the Association of Business Recovery Professionals, has released a statement regarding the recent increase in personal insolvencies.
‘The quarter on quarter increase in personal insolvency is regrettable, yet expected, given job cuts and compulsory redundancies being announced in recent months, in both the public and private sector. Nearly a third of people do not have any savings at the moment according to R3’s latest personal debt snapshot, with many households failing to have a contingency plan for any fall in income or increased outgoings. Therefore, a swift change in circumstance such as losing a job is likely to have pushed many individuals into insolvency.’
They go on to say…
‘The increase in personal insolvencies is likely to continue; we have seen over recent months living costs rise and high inflation effectively reducing ‘take home’ pay. Added to the fuel hike that will hit families in the winter months, this may be the start of a worrying trend.
Unfortunately, this data does not capture the figures for those in informal insolvency procedures such as debt management plans so we are unable to get a true measure of how many households are struggling.’