93% increase in people recommended for insolvency

The Consumer Credit Counselling Service (CCCS) recommended insolvency to 39,663 of its clients in 2009, it has been revealed.

Of those who were advised, 20,659 of them were urged to go into bankruptcy.

The insolvency rates from 2009 show a 93% increase in the amount of cases from the previous year - when the figure was just 20,516, with only 15,724 of those told to go into bankruptcy.

Delroy Corinaldi, CCCS director of external affairs, stated that the figures highlighted the large amount of people who have unmanageable debt - despite the recent improvement of the economy.

The organisation also welcomed the introduction of revised individual voluntary arrangement (IVA) protocol, which it hopes will lead to a more effective process for everyone involved.

Jackie Westerman, an insolvency practitioner, noted that the amended procedure will provide clarification and could see more flexibility for people who unexpectedly experience problems with their IVA.