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Middle income insolvency on the rise

UK personal insolvencies have fallen slightly in 2010. Good news but it is tinged with some facts that are more worrying. There has been a "significant" rise in the number of middle income individuals and families that are making this declaration.

Experian, the credit-check information company for individuals and businesses have released their insolvency and bankruptcy findings and many are likely to find those worrying. While overall UK insolvencies are down 1% on the 2009 figures, to 157,741, it found rises in a particular area of the people demographic. Middle class and skilled working class individuals make up 10% of all personal insolvencies despite being 13.2% of the population. Many of these people are both married and have children. The rise is 0.45% on the 2009 figures. The second highest rise comes in another people demographic. Single young professionals and middle income earners. Despite being 3.99% of the UK population, 6.36% of insolvencies were in this group, though the increase is slight.  

The regional split shows Scotland as the worst affected area with Glenrothes showing an insolvency rate of 89 per 10000 indivdiuals. Experian reports that this is twice the national average. Moving south, Washington , Tyne & Wear is the worst English region with 77 in every 10000 individuals. Predictably, London does best with Kensington, Chelsea and Wimbledon all showing less than 20 individuals per 10000.

Experian have used improved software to compile these statistics and establish groupings such as bankruptcies, individual voluntary arrangements (IVA's) and debt relief orders (DRO's). After which a further split takes into account age, employment status and occupation (if any).  

Experian spokesman Simon Waller said: "While it is encouraging to see a small reduction in personal insolvency levels across the UK, there are certain sections of society that continue to face ongoing difficulties. The recession hit different people and communities at different stages, and some are finding it harder to shake off its effects".


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