Bucking the national trend, the Isle of Wight saw a reduction in personal insolvencies between 2016 and 2017 but is still near the top of the list for high rates of personal insolvencies, says insolvency trade body R3.
According to the annual personal insolvency rates released by the Insolvency Service, the 2017 statistics show there were 37.4 insolvencies per 10,000 adults compared to 38.2 in 2016 on the Island – placing it as the local authority with the 7th highest rate of personal insolvency of all 348 districts in England and Wales.
As with 2016, the most frequent type of insolvency on the Isle of Wight was debt relief orders (DROs), accounting for 48% of the total. In England and Wales overall, there were over twice as many individual voluntary arrangements (IVAs) as DROs in 2017 (60% of all personal insolvencies were IVAs, 25% were DROs, and 15% were bankruptcies). DROs are designed to help people with low incomes, debts and assets, while IVAs are more usually associated with consumer spending – particularly credit card debt.
The data also revealed the insolvency rate for women on the Isle of Wight (40.7) was higher than the rate for men of 33.8 per 10,000 adults, a more pronounced gender split than for England and Wales overall (women had a rate of 22.6 per 10,000 adults compared to 20.2 for men).
Mike Pavitt, chairman of the Southern Committee of R3 and corporate restructuring and insolvency partner at Paris Smith LLP solicitors, comments:
“The latest regional personal insolvency statistics follow a very established pattern: insolvency rates are typically highest on the coast, with six of the 10 places with the highest rate of personal insolvency by the sea. Seasonal work dries up over the winter, and when it is available, wages tend to be low.
“Looking for the positives for the Island, however, we can see that the statistics are an improvement on 2016, while in more heartening news, the Government has launched a £40 million fund in February to encourage investment and to boost jobs in coastal communities.
“Anyone who is concerned about their personal financial situation should seek advice and support from a trustworthy and regulated source, as the sooner issues are address, the more options are available.”
Insolvencies by Local Authority (England and Wales)
|Local Authority||Insolvencies per 10,000 adults|
|Isle of Wight||37.4|