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As the credit crunch continues to bite news reaches the bankruptcy blog from the Daily Telegraph that, "Record number of Britons to be declared insolvent, leading expert predicts." The article makes very interesting reading. It goes on to note that:
"The current number of bankruptcies stands at 107,000 but is expected to a record annual level of 130,000 by the end of the year, according to personal insolvency experts Tenon Recovery.
Mark Sands, the company's national head of bankruptcy, said: “I expected this year to be the worst on record but even I have been stunned by the level of personal insolvencies - we are sailing past the previous record and still have more than two months of the year to go.
“At this rate we expect to see as many as 130,000 personal insolvencies over the whole of 2009, an increase of 22 per cent on the levels seen in 2008.”
He added: “Even with interest rates close to zero, the effects of the downturn combined with the massive build up of consumer debt in the good years have created ‘a perfect storm’ that is sweeping more people into personal insolvency than ever before...”
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...