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North East a hotspot for personal insolvency

Figures showing the hotspots for personal insolvencies in England point to a North-South divide last year.

The highest rate of personal insolvency - such as bankruptcies and individual voluntary arrangements - was in the North East of England in 2009.

The lowest level was in London, new data from the Insolvency Service shows.

Personal insolvency numbers are currently at record highs, in part owing to people finding themselves out of work and with debts in the downturn.

This shows that the highest levels were in the North East where there were 38.1 personal insolvencies per 10,000 adults in 2009.

“Prior to the recession, the North East had a higher than average unemployment rate and the region’s construction industry was badly hit during the economic downturn so it is understandable that personal insolvencies are more common there,” said Steven Law, president of insolvency trade body R3.

This was posted in Bdaily's Members' News section by Ruth Mitchell .