'Spike' in personal insolvencies predicted later this year by North West experts

A survey predicts a spike in personal insolvencies in the North West  later this year.

Friday, 14th August 2020, 12:30 pm
Allan Cadman of R3

Now residents with debt problems are being urged to seek advice at an early stage.

More than 8 in 10 insolvency and restructuring professionals questioned in a survey by their trade body R3 say they expect personal insolvency numbers to increase within the next 12 months.

Of these, the majority, 62 per cent, expect the increase to happen in October-December this year

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Three in 10 think it will occur in the first quarter of 2021.

Allan Cadman, R3’s North West Chairman, said the survey suggests the impact of the pandemic on people’s finances had been delayed.

Nearly half of respondents said demand for personal insolvency advice had decreased during April-May, while 38 per cent said it was unchanged.

lan added: “The Government has introduced unprecedented levels of support for businesses and consumers since the start of the pandemic, and financial services providers have also taken steps to help consumers, for example through payment holidays.

“This has meant that the number of people considering a personal insolvency process or asking for advice has not risen as sharply as we may have expected.

“However, these support measures are temporary, and do not cover everybody. When they come to an end, people are likely to find themselves in financial difficulty if their circumstances haven’t returned to what they were before the pandemic.”

He added: “With concern around future unemployment levels rising, it is vital for anyone in financial distress to seek advice from a qualified provider.

"Our message to anyone whose budget is under pressure is not to wait until matters come to a head, as the sooner you get advice, the sooner you can start to get a grip on your financial situation.”