By North East Lincolnshire sees rise in people declaring bankruptcy
Last year North East Lincolnshire saw a rise in the number of people declaring bankruptcy and insolvent.
New government figures show that the area now has the highest rate of insolvent and bankrupt people who are unable to pay their bills in the country.
A total of 588 people declared themselves insolvent in 2021, meaning they had no way to pay back their debts.
North East Lincolnshire was the worst area in the country, with 47.1 people in every 10,000 adults having to declare their difficulties.
This shows the biggest rise per person of any local authority compared to the previous year.
The area also had the most bankruptcies per person, with 42 people declaring themselves bankrupt, as Torbay, Boston, and Wyre followed close behind.
During the Covid pandemic, many people faced the loss of business or employment.
As energy costs take a steep incline, this year is also likely to be challenging for many residents, with most already sharing their money worries online.
Insolvent people can enter into an IVA (insolvency voluntary agreement) to repay creditors some of what they are owed.
In 2021 North East Lincolnshire overtook Blackpool, which had led this category for five years.
A total of 463 residents (roughly 37.1 per 10,000) entered IVAs last year, a large increase from 23.6 per 10,000 five years ago.
The national insolvency rates have fallen for the second consecutive year in contrast to the local numbers.
The government believes the drop in national numbers is due to the extra support for struggling businesses during the pandemic.
The north and north east remain the area with the highest rates, with Hull, Halifax, and Mansfield all recording poor numbers.
The areas with the least insolvencies were mainly in the south of the country and London.
The Insolvency Service added: “Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This trend has been similar since 2006. However, the long-term trend does show an increase in insolvency rates for younger adults (18 to 34-year-olds) and a decrease for older adults (55 years and older).”
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