England and Wales witnessed the most financially insolvent individuals in nine years in 2019. The reason was more debt levels of low- and middle-income families. The number of financially insolvent individuals in 2019 was 122,181, 6% more than in 2018, and the greater annual aggregate since 2010. The main reason for the increase was 9.8% more individual voluntary arrangements. This marked the greatest annual level of IVAs since they were introduced in 1987. Insolvency experts cited a reason for more insecure employment, late payments under the universal credit programme, and Brexit uncertainty. It is a great rise in the population with high debt levels.

Two prime reasons for the significant rise in the financially insolvent individuals in England in 2019

In January 2020, the Resolution Foundation reported that low-income families registered costly consumer debt at an alarming rate over the past decade. It added that these families were more susceptible to unforeseen hard times.

The MOJ had also revealed the issuance of a record number of county CCJs in 2019 against people who fell into debt. The number was double the number eight years back. 2019 witnessed a 3% rise in England and Wales's population with CCJs against them who could not repay their debts.

Some facts about the annual rise in Company insolvencies in 2019

Company insolvencies, with the exception of one-off "bulk insolvency events," went up 6.8% annually in 2019.

With the exception of bulk events, 2019 witnessed 17,196 corporate insolvencies. This number was a record high since 2013.  The bulk events mostly entailed the collapse and reformation of large hotel and retail chains.

R3 is the Board for the whole community of England’s insolvency and reformation professionals. Its president, Duncan Swift, pointed out Brexit uncertainty as a factor. But he also held some other changes in 2019 responsible. They are less hiring by employers, weaker consumer self-assurance, and downturns in the manufacturing as well as construction sectors.

Some facts about the significant rise in the financially insolvent individuals in England in 2019

Some insolvency partners at law firms stated that the figures depict a bleak scenario of the economy. They also stated that the situation was not likely to recover in 2020. The reason they cited was the several zombie firms hanging on over several vulnerable sectors.

According to the Insolvency Service, the Faliment Personal Anglia in the fourth quarter improved slightly following a slight drop in the third quarter.

The England government made an analysis in 2019. It revealed that ladies were more at risk of being indebted and registering for an IVA. IVA registering involves making reimbursements for generally five years, even though they generally start following some debt relief. The analysis also revealed that residents in coastal towns were more at risk of becoming financially insolvent.