Sell and rent back stop insolvencies
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Stop insolvencies consider Sell and rent back
A record number of people going bust are now up to 27%.
The number of personal insolvencies is now up to a record 33,073 in the last quarter, which is truly an unbelievable figure. Many others having to sell their homes and considering the sale and rent back.
A record 33, 073 people in England and Wales were declared insolvent throughout the three months to the end of June, also scary predictions that confirm possible numbers of people to go bust could be in excess of 130,000 by the end of the year.
The insolvency services said that the number of personal insolvencies jumped more than 27% from the same period last year, simply because of the credit restriction and lending money is clearly becoming more and more difficult, some might say nearly impossible for borrowers because of never-ending rising job losses. It’s hard to believe that personal insolvencies reached number high of 63,300 in the first half of this year.
The company insolvency numbers also increased sharply, almost 40% year on year to 5,055. This number is truly unbelievable and clearly a scary figure.
The experts within Insolvency sector confirmed the figures showed the depth of the recession, which clearly highlights that we are still within the deep part of recession.
It is a never-ending nightmare for many people who are looking for job security within their current job, let alone a new job people. The general public is seriously concerned about security because all people keep hearing is the number of companies going bust and everybody knows that this has a knock-on effect on workers and obviously could in turn push more individuals into the red/financial difficulty.
The individuals made insolvent over the over the three months, 18,870 people were declared bankrupt and 12,225 entered into a individual voluntary agreement (IVA) with their creditors while the remaining 1978 signed up to the government's new debt relief orders.
Clearly the biggest increase was the number of IVA’s entered into in the second quarter of this year, it increased by 27.4% year on year.
Bankruptcies were up by 15.3% over the year, and in the second quarter of this year 86% were instigated by borrowers.
If you are finding it difficult to manage your finances try not to leave it to the last minute look at all your options in advance, there are options available even if it is last-minute.
Try to consider your options as soon as you think you may be riding into financial difficulty i.e. sell and rent back.
The sell and rent back industry has just recently under gone regulation by the Financial Services Authority (FSA). This authorisation has been put in place due to rouge traders within the industry.
