Tuesday 9th of November 2010
An increase in unemployment levels as a result of the government's comprehensive spending review will lead to a rise in the number of personal insolvencies, it has been claimed.
President of R3 - the insolvency trade body - Steven Law said seeking early advice about how to deal with financial problems is the only way to counter the stressful situation of bankruptcy.
He noted one in every 311 Brits entered financial liquidation in the third quarter, contrasting with the number over the last 25 years of one in 575.
"These official figures are only the tip of a debt iceberg with nearly one million individuals struggling with debt, but not seeking advice," Mr Law stated.
Last week, statistics published by The Insolvency Service revealed the number of IVAs rose to 12,960 in the third quarter of 2010, an increase of 4.6 per cent compared to the same three months of the previous year.
By Ashley Littley
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