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R3: Bankruptcies and IVAs to rise over next 12 months
24/07/2008
The number of people with significant debt is likely to increase in the next 12 months, according to a survey of insolvency practitioners.
Bankruptcies and individual voluntary arrangements are predicted to rise by 70 per cent of experts questioned, while 68 per cent said a rise would be witnessed in the next six months.
The survey, carried out by insolvency professionals R3 and reported by the Press Association (PA), also found a third of respondents had already experienced more people seeking advice.
Irresponsible borrowing and lending were cited as reasons for the increase. Debt is also now considered a way of life, R3 said.
"A long period of protracted pain" should be expected, R3`s president Nick O`Reilly told the PA.
Numbers of business insolvencies are also climbing, according to 90 per cent of those questioned. The leisure, retail and construction industries are predicted to be the hardest hit, said Mr O`Reilly.
