Personal insolvency rate drops in towns and cities across Thames Valley

The number of people entering insolvency in towns and cities across the Thames Valley has dropped.

New figures released by the Insolvency Service this month show the number of personal insolvencies in the South East, of which Thames Valley is a part, has fallen from 21 per 10,000 adults in 2012 to 19 in 2013.

The figures also show the South East has the second lowest personal insolvency rate in the country – coming second only to London and falling below the rate of 22.2 insolvencies per 10,000 adults for England as a whole.

Local government area	Rate per 10,000 adult population 2012	Rate per 10,000 adult population 2013	Notes
Reading	15.1	14.5	Reading has seen a slightly bigger drop in personal insolvencies than West Berkshire
Oxford	22.7	18.0	Oxford has seen a notable drop in personal insolvencies
Slough	20.9	19.5	A small drop for Slough
Wokingham	10.4	11.0	While the only area in Thames Valley to have seen an increase, Wokingham still has the lowest personal insolvency rate
Windsor and Maidenhead	14.2	13.9	One of the lowest personal insolvency rates in the area
Bracknell Forest	25.9	18.2	Bracknell Forest has seen the biggest drop in the area
West Berkshire	19.7	19.1	Overall, West Berkshire has seen a small fall in the rate of personal insolvencies

Julia Branson, from the Southern Region Thames Valley Group of R3, says that while it’s good news that less people are entering insolvency, the figures could be masking a deeper issue.

Julia, who runs her own restructuring firm in Reading and is also a partner at James Cowper Kreston Insolvency Services, said:

While it’s welcome that official personal insolvencies continue to fall, it’s important to remember that these statistics do not tell the full story. The big issue is that debt management plans are not tracked by government. We know thousands of people use plans like these, but we don’t know the exact extent of their use.”

“Often people end up in debt management plans because they struggle to access a formal insolvency option, which might be better suited for their situation.  We warned earlier this year that some people are so cash-strapped they can’t afford the £700 it costs to declare themselves bankrupt. Our research shows 70% of personal insolvency practitioners have seen this happen.”

While most parts of Thames Valley followed a similar trend in personal insolvency rates, there were fluctuations between areas. Wokingham was the only area to see an increase in personal insolvencies. However, it was a minor increase and the area retains the title of having the lowest personal insolvency rate in the Thames Valley.

Julia Branson
Partner
+44 (0)118 9590261
jbranson@jamescowper.co.uk