Insolvency increase in 2009

The amount of people facing insolvency in 2009 will reach record levels, predicts the accountancy group KPMG. The news follows on from reports by the government during November that insolvency had taken a significant upturn. Many more people and businesses were declared insolvent in the UK during the third quarter of the year.

Corporate insolvencies increased by 10.5% and individual insolvencies went up by 8.8% during the third quarter of 2008. KPMG have estimated that 104,000 people have been declared insolvent over 2008. They predict that this number will sharply increase in 2009 with an estimated 150,000 people facing insolvency during the course of the year.

KPMG have raised concerns about people who are heavily in debt as a result of day to day spending or using credit to spend on things such as holidays, claiming that they are “ill-equipped” to handle the gloomy forecast for the UK economy. In their findings, KPMG report that at least £1.1bn of bad debt has been written off by creditors.

As the economic downturn in the UK continues to put pressure on businesses, it is likely that many people with debt problems are facing the possibility of redundancy. Those who are struggling to keep up with debt payments are left with limited options, particularly as mortgage rates fluctuate and many people finding it increasingly difficult to meet payments.

The increase in numbers of people facing insolvency correlates with a huge surge in the amount of people seeking assistance from a government-funded advice service. Families are struggling to meet debt repayments and many are falling into arrears on mortgage payments as a result of the economic downturn. The impact of paying off credit used to cover an increase in expenditure over the Christmas period is likely to be a further difficulty facing many families across the UK.

For those who are struggling to meet mortgage payments, it may seem like options are limited and the prospect of repossession may seem like the only one available to you. However, there may be another way out. Here at Swift Capital, we can help you realise the cash that is locked away in your home by offering you the possibility to release equity from your home.