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Seaside towns an insolvency hotspot

August 20, 2015 | Financial Saviour

We’re all familiar with the tune of ‘Oh I do like to be beside the seaside’, but it’s perhaps a case of the opposite being true for some residents of England’s coastal towns and cities where personal insolvency peaked throughout 2014.

According to the Insolvency Service, many seaside resorts, along with Merseyside and the North East of England, were the concentrated areas that saw the highest rates of personal insolvencies last year, with London having the lowest rates for all types of insolvencies.

Even though the North East took on the unfortunate title of 2014’s region with the highest insolvency rate at 29.2% per 10,000 adults, and also continuing to top the rates concerning bankruptcies, individual voluntary arrangements and debt relief orders, many areas with the highest insolvency rates were found to be in coastal resorts like Blackpool, Scarborough and Torbay in Torquay.

Torbay was also third in the number of new insolvency cases in 2014 with 458, but still quite a way behind the 803 registered in Kingston-upon-Hull and the 834 cases in Stoke-on-Trent.

Data used to support the Insolvency Service’s research was sourced from the government agency’s annual statistics which highlights the breakdown of individual insolvencies by location, age and gender.

This also showed, quite interestingly, that for the first time in England, the insolvency rate for females was higher than the same rate for males; believed to be caused by the fact that for all debt relief orders approved last year, these were for a higher proportion of women than men. There was not much to distinguish between males and females when it came to age though, with personal insolvency rates at the highest in the 35 to 44 category for both.

In all this talk of personal insolvencies, there is some good news, however. The general trend appears to be showing that the rate of individuals entering into personal insolvencies per 1,000 adults in England and Wales is on its way down. This figure was at 31% six years ago in 2009, and dropped by almost 10% to 21.8% last year throughout 2014.

For any issues or questions concerning all types of insolvencies whether they be personal or company-related, Financial Saviour are here to help and provide valuable advice specially tailored to your circumstances. Get in touch today or fill out our enquiry form for a quick assessment of your situation.

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