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There have been a number of interesting insolvency related pieces in the press of late. The first comes from the Press Association and relates to the the variable rates of insolvency accross the country. The source for the story is an original piece of research by the ONS. The work is entitled: Individual Insolvencies including Bankruptcies, England and Wales, 2001–11. The key findings are:
• In 2011 the North East was the region with the highest total individual insolvency rate at 35.2 total individual insolvencies per 10,000 adults, twice that of London which has the lowest individual insolvency rate at 17.5 total individual insolvencies per 10,000 adults
• Total individual insolvency rates rose across the English regions and Wales between 2001 and 2011, increasing five-fold in the North East, where total individual insolvencies per 10,000 adults rose from 7.3 to 35.2
• Total individual insolvency rates generally peaked in 2009, while the number of individual insolvencies peaked in 2010
• Total individual insolvency rates began to rise dramatically from 2004, following the implementation of the Enterprise Act 2002 and then again in 2008, coinciding with the start of the recession
Regional individual insolvency rates
Changes to bankruptcy law (the Enterprise Act 2002) came into force in England and Wales in 2004. These changes mean that bankruptcy could last for a minimum term of one year, rather than the two or three years required previously. However, those who have previously been made bankrupt or have been through criminal bankruptcy could face a term of bankruptcy for up to 15 years.
The total individual insolvency rate per 10,000 adults1 in the English regions and Wales from 2001 to 2011 is shown in Figure 1."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...