Responding to the Insolvency Service statistics on personal insolvencies, released this morning, Mark Sands, National Head of Personal Insolvency at RSM Tenon said “Double dip recessions, uncertainty on the high streets and in our wallets are all signs of the times, however, another is the consistent levels of personal insolvencies with approximately 28,000 every quarter this year. However, there are signs of confidence in the future of the economy. Individual Voluntary Arrangements which usually require the individual to pay creditors over a five year period increased by 12 per cent on the previous quarter, showing that more people in debt believe they will remain in employment which mirrors the trends seen in employment levels and business surveys. The downturn, whilst long and frustrating, is not hitting people as hard as the short, sharp, deep recessions of the past.”
Mark continues “So what does the future hold? Debt Relief Orders have surpassed bankruptcies for the first quarter ever, not signalling the end of bankruptcy, but proving that more people are becoming desperate with debts less than £15,000, a sum which may seem low to many commentators but which is a mountain of stress for those with no means to pay it. Millions of people are still carrying debts taken on before the credit crunch, struggling to balance their monthly household budgets, helped in part by low interest rates, but with no clear way out. Overall consumer debt levels are not reducing – in many households they sit there, the elephant in the room, stopping families getting on with their lives.”
For more information or to arrange an interview with Mark Sands, please contact Phillip Ward, Senior Marketing and PR Manager at RSM Tenon on 0161 827 8431 or e-mail phillip.ward@rsmtenon.com
Notes to Editors
Official Insolvency Service statistics were released on Friday 2nd November at 9.30am.
http://www.insolvencydirect.bis.gov.uk/otherinformation/statistics/201211/index.htm
- An insolvent individual can choose to be declared bankrupt, take out a Debt Relief Order or enter into an Individual Voluntary Arrangement (IVA). In Scotland, the terms of different as the legislation is not the same – a Trust Deed is an IVA and Sequestration is a bankruptcy.
- Debt Relief Orders are only available for people with debts of less than £15,000, who have minimal assets and spare income.
Recovery service line in RSM Tenon
The Recovery service line of RSM Tenon is the leading trustee in personal bankruptcy and the second largest corporate appointment taker in the UK. Specialising in turnaround, recovery, restructuring and insolvency in both the corporate and personal sectors, the Recovery service line of RSM Tenon is led by 40 partners and supported by over 400 staff operating from a network of over 30 offices across the UK.
About RSM Tenon
RSM Tenon is the 7th largest accountancy and business advisory firm in the UK, and has been recognised as the National Firm of the Year by this year’s British Accountancy Awards 2011. The company employs more than 2,700 people across over 35 offices. RSM Tenon Group is an independent member of RSM International, the 7th largest network of independent accounting and consulting firms worldwide with more than 700 offices across more than 90 countries.
Visit the RSM Tenon website - www.rsmtenon.com - or to understand more about RSM International – www.rsmi.com.