ashtondav
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Post by ashtondav on Aug 29, 2019 10:00:59 GMT
Just received an email from FC with a link to some stats from the risk officer and I am amazed by the difference in personal insolvencies in the us and the uk.
Us personal insolvencies peaked at around 140 (Q1 2008 = 100) in 2009. They’re now around 60.
UK personal insolvencies peaked at around 140 (Q1 2008 = 100) in 2009. In Q4 2018 they were back up to about 140.
That is astonishing! After 10 years of (UK) recovery insolvencies are at the same level as in the depths of the worst recession since the ‘30s, when unemployment was 7.5% against 4% now.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 29, 2019 13:45:58 GMT
People are borrowing too much. Personally, I don't find that at all astonishing.
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Post by elpasi on Aug 29, 2019 14:52:31 GMT
When we take the government statistics on insolvencies ( assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/821381/Commentary_-_Individual_Insolvency_Statistics_Q2_2019.pdf) we get a slightly different picture. See figure 1, page 3 (and figure 4, page 8 if you want it normalised by England+Wales adult population). While individual insolvencies are increasing, this is a very different kind of insolvency than back in the mid-to-late 2000s - a growing number of these are IVAs instead of bankruptcies, which are somewhat easier on the person to take out and a much more mutual agreement with the creditors. I am wondering if the rise mentioned may be because IVAs are a more positive exit to financial difficulty than a bankruptcy would be. Figure 6 is interesting because they show that the rise is less pronounced in Scotland, and figure 7 shows a slight shift to IVA in Northern Ireland but overall a near-constant amount of insolvencies in total. |
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Aug 30, 2019 9:12:12 GMT
Have 2 mates who went under, the one who went bankrupt lost his house, Car everything, the one who had an IVA still has his house and drives a 50K car.
Both owed similar amounts but were given different advice on how to get out of it. personally I think IVAs & CVAs are being used by some people recklessly ( or cleverly depending on your view ) to reduce outgoings, especially those who put company into liquidation, then go for IVA to get rid of company debts they guaranteed.
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Stonk
Stonking
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Post by Stonk on Aug 30, 2019 9:19:16 GMT
Have 2 mates who went under, the one who went bankrupt lost his house, Car everything, the one who had an IVA still has his house and drives a 50K car. Both owed similar amounts but were given different advice on how to get out of it. personally I think IVAs & CVAs are being used by some people recklessly ( or cleverly depending on your view ) to reduce outgoings, especially those who put company into liquidation, then go for IVA to get rid of company debts they guaranteed.
Thanks for the advice! I'm off to ask Funding Circle for a loan (they've junk-mailed me enough times offering one). I will be very happy to personally guarantee it. I do not have a 50K car, so I'll have to make sure I factor that requirement into the amount I'm borrowing.
Seriously though, it is no surprise that insolvencies are high when the negative consequences of being insolvent are so minor and short-term.
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