Insolvency hotspot 'is Torbay'

Thursday, July 8th 2010

The top insolvency spot in England and Wales has been revealed as Torbay in the south-west.

Insolvency trade body R3 revealed rates of new cases per 10,000 in 2008 stood at 45.8 for Torbay, while Kingston upon Hill in Yorkshire and the Humber is in second place with 40.7 new cases per 10,000 people.

The likelihood of someone in the north-east becoming insolvent when compared to London residents is 69.5 per cent higher. The capital's residents are the least likely to submit themselves to a formal insolvency process.

Lincoln in the East Midlands took third spot in the chart, with 39 new insolvency cases in 2008 per 10,000 individuals.

Commenting on the figures, president of R3 Steven Law said: "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."

One insolvency route is individual voluntary arrangements, which may be suitable for people with unsecured debt of more than £15,000 that is owed to a number of creditors.