- Friday, 19 June 2009The number of people setting up an IVA or declaring bankruptcy tracks the unemployment rate with a lag time of between three and six months, it has been noted.
Accountancy firm Begbies Traynor has predicted that bankruptcy and IVA statistics will combine to show more than 125,000 personal insolvencies entered into by the end of 2009.
During 2010, meanwhile, the number of people declaring bankruptcy or setting up an IVA is predicted to rise further, to around 160,000.
But Joanne Wright, personal insolvency partner at the accountant, says: "We are finding a strong linkage between rising unemployment and rising levels of personal insolvency.
"We have also identified about a three to six-month time lag between someone losing their job and being forced into personal insolvency."
Based on recent unemployment statistics, she claims that the accountant's forecasted figures could ultimately prove to be conservative.
The comments follow figures from the Office for National Statistics which show more than a quarter of the population is now unemployed, while job vacancies continue to fall.
Recent IVA News23% of first-time buyers save for five years to raise a depositWed, 04 May 2011
Brits dealing with Finance Management should shop around for car insurance Wed, 04 May 2011
Parents, including those with Finance Management, advised to start saving for children's weddingsTue, 03 May 2011
Newlyweds may be in need of Finance Management plans after overspending on weddingTue, 03 May 2011
Renting rather than buying may be an option for Brits with Finance Management Thu, 28 Apr 2011
Consumers coping with Finance Management may want to shop around for cheap energy tariffsWed, 27 Apr 2011
Increasing number of Brits turning to loans for home improvementsWed, 27 Apr 2011
Brits, including those with Finance Management plans, to spend £267 on Royal Wedding Tue, 26 Apr 2011
Equity release can be used to 'become debt-free'Tue, 26 Apr 2011
| |
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ
Consumer Credit Licence Number: 0580960