Insolvency figures ‘tip of the iceberg’

The debt management problems experienced by Britons have been understated by the latest insolvency figures, it has been claimed.

Finance charity said the news from the government’s Insolvency Service last week revealing that 35,242 people went bust in the third quarter of 2009 is not the whole picture.

Spokesperson Jessica Bown stated that a great many more have yet to take any action over their arrears, with as many as 15 per cent not admitting to anyone that they have debt management problems.

She commented: “Many people are ashamed to admit to friends and family that they have a problem, but this just delays the repayment process and means they feel they have nowhere to turn.”

The figures for insolvency represented an increase on the tally of 33,073 seen in the second quarter.

Among the total in the three months to the end of September were 18,347 cases of bankruptcy, with 12,390 individual voluntary arrangements and 4,505 debt relief orders also being taken out.

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