Bankrucpies reach record level
The government's Insolvency Service states that more and more inhabitants of Wales and England are bankrupt. In January, February and March of this year 19,062 people went bankrupt and 10,713 individual voluntary arrangements (IVA’s)*. These numbers are 54 % higher than last year.
There were 29,774 personal insolvencies** during that period. In 2006, 2007 and 2008 people that were declared insolvent have stayed the same over these years. The rise of insolvencies and bankruptcies is due to the economic crisis.
Alan Tomlinson of insolvency specialists Tomlinson’s states that there are signs of recovery in the numbers and he is hopeful.
All over the world there is a financial crisis. I feel sorry for the companies going bankrupt and for the people with personal insolvencies. In my opinion not everything about the worldwide financial crisis is bad. Of course companies go out of business and people can not pay for their goods anymore, but it is also a sign that we need to handle our money differently! In the United States of America almost every household has got one or two credit cards; they are paying with money they do not have and get into debt. This crisis shows us we can not continue like this and it also clears the air. What I mean is the unhealthy businesses will disappear and the healthy ones will remain.
* Individual voluntary arrangements (IVA’s): individuele vrijwillige regelingen
** Insolvencies: faillissementen