Drop in the number of bad loan debt cases

Following the credit crunch, many UK citizens have been struggling to meet loan repayments deadlines.

As a result of stiffening lending criteria, sweeping job cuts and reduction in family income, a huge number of personal insolvency cases have been registered in the UK.

Quite unexpectedly, the Insolvency Service has reported a decrease in the number of insolvency cases in the UK.

Over the course of three months (July, August, September), 13,907 people went bankrupt because of bad loan debts, which is the record low level in five years’ time.

Over the last twelve-month period there was a significant drop by 24%  in the number of people who became insolvent.

Experts say that a large number of people going bankrupt is becoming a usual thing in the UK and although recent figures show a downward trend, it shouldn’t be taken as a sign of improvement.
 


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