Decrease in individual insolvencies driven by fees

[Wintry]

Hi

 

Decrease in individual insolvencies (10.2% decline) driven by fees...Insolvency News article

 

http://www.insolvencynews.com/article/14241/personal/decrease-in-individual-insolvencies-driven-by-fees

 

More people with debt problems struggling to make that fresh start?

 

People in current debt solutions on unmanagable budgets and getting worse

 

Not helping anything this and cant go on

Edited August 4, 2012 by Wintry

[debtinfo]

ahh the 3 types of lies

 

funny how the article doesent actually link to the full page of stats here http://www.insolvencydirect.bis.gov.uk/otherinformation/statistics/201208/table2.pdf

 

As you can see the number of bankruptcies has been in freefall since DRO's were introduced as people more from a more expensive option to the new low cost option provided specifically for them

[Wintry]

Are you getting cynical debtinfo?

 

The stats do indeed more or less back up what you are saying regarding DROs, however could it also be that many people have gone for a DRO who would not have otherwise gone bankrupt, distorting the figures a little perhaps, example relatively low debts etc - I think so personally and from genuine experience.

 

It is also very true now (again in my experience) that the fees in bankruptcy are having an effect and in some cases certainly at least delaying people going bankrupt.

 

Many people currently in debt management plans and formal insolvency solutions are most definitely struggling with payments and it will definitely turn into a gallop if the indicators are right (cuts, job losses, wage freezes increase in travel & living costs etc) in fact it is a racing certainty on the form so far and I suspect most good judges involved in the debt advice sector recognise this however much some of them may wish not to.

 

Many others are dipping below the water line - simple economics unfortunately - things are set to get a lot worse, next year especially.

 

Get those IPA / IPO reviews rolling:)

 

PS - could you expand a little on the three types of lies?

Edited August 15, 2012 by Wintry

[debtinfo]

Ahh right, well it makes more sense if you actually know the saying (sorry about that) its an old quote which goes something like, There are 3 types of lies,

 

lies, damn lies and statistics

 

Basically saying that if you just pick a few out of context without showing the whole lot which is what the article does then you can interpret pretty much anyrhing from them

 

Anyway i agree that there is never just one factor in any change and whilst the DRO thing is probably the main one im sure that increased fees do at least delay somepeoples bankruptcies even if it does not stop people doing it en masse. Unfortunately that is the decision that has been made ie that the fees for bankruptcies go up to support the introduction of a low cost measure for the most needy at the bottom, in other words the bankruptcies subsidise the DRO's, The only way it could be any different is to charge more for DRO's which obviously would defeat the point of them or for the government to put money in, (at the moment the Insolvency Service is self financing in most respects)

[Wintry]

Ahh right, well it makes more sense if you actually know the saying (sorry about that) its an old quote which goes something like, There are 3 types of lies,

 

lies, damn lies and statistics

 

Basically saying that if you just pick a few out of context without showing the whole lot which is what the article does then you can interpret pretty much anyrhing from them

 

Anyway i agree that there is never just one factor in any change and whilst the DRO thing is probably the main one im sure that increased fees do at least delay somepeoples bankruptcies even if it does not stop people doing it en masse. Unfortunately that is the decision that has been made ie that the fees for bankruptcies go up to support the introduction of a low cost measure for the most needy at the bottom, in other words the bankruptcies subsidise the DRO's, The only way it could be any different is to charge more for DRO's which obviously would defeat the point of them or for the government to put money in, (at the moment the Insolvency Service is self financing in most respects)

 

Hi

 

Yes, good answers and points.

 

You got me there debtinfo (the cynic in me must have got top side, but it has been a long day)

 

I should have known what you meant with the 3 types of lies, I quote the phrase often enough - who was the famous person who originally came out with it, I forget?