A statistical report issued by the Insolvency Service shows that nearly 8 in every 10 parliamentary constituencies across England and Wales benefited from lower numbers of personal insolvencies from 2011 to 2012.
Overall, there were 24.5 personal insolvencies per 10,000 of the population in 2012 representing a fall from 26.9 the previous year. The data compiled by the Insolvency Service includes all formal forms of personal insolvency encompassing bankruptcies, Individual Voluntary Arrangements (IVAs), and Debt Relief Orders (DROs). Official statistics are not kept for individuals subject to debt management plans and are not included in the analysis.
London has enjoyed the lowest numbers of people being made personally insolvent and Wimbledon had a rate of just 6.7 people per 10,000 residents in 2012 – just over a quarter of the average across England and Wales. Ealing and Southall also fare well in the Insolvency Service report with levels of 9.4 per cent.
The Vale of Clwyd suffered the highest rates of personal insolvency in 2012 where 59.2 people per 10,000 of the population entered into bankruptcy, an IVA or a DRO, making residents of the Vale of Clwyd more than twice as likely to be personally insolvent than the rest of England and Wales. The coastal town of Torbay in Devon had the next highest personal insolvency numbers in 2012 where the rate was 55.7.
The report breaks the numbers down by types of personal insolvency and Blackpool South had the highest rate of bankruptcies in 2012 at 16.2 individuals made bankrupt per 10,000 of the local population. Torbay was just behind on 16.0.
Residents of Tooting in the London Borough of Wandsworth enjoyed the lowest levels of bankruptcy in England and Wales and just 2.4 people in 10,000 were made bankrupt in 2012.
In terms of increases in bankruptcy rates, Bedford had the highest increase from 2011 to 2012 when the rate jumped to 10.1 from 6.0. Sherwood in north Nottingham saw bankruptcy numbers fall the sharpest from 17.1 in 2011 to 6.7 in 2012. Overall, bankruptcies fell across 89 per cent of all constituencies.
Debt Relief Orders– seen as a lighter form of bankruptcy for people with lower levels of debt- had an overall average rate of 7 in every 10,000 people across all constituencies. The Vale of Clwyd and Torbay had the highest levels of 33.9 and 28.5 respectively. Rates were lowest in Harrow West and Torfaen in Wales.
The rate of Debt Relief Orders increased at a higher rate in Weston-Super-Mare, from 5.5 in 2011 to 14.2 in 2012. Rates fell at the sharpest rates in Carmarthen West and South Pembrokeshire where DRO rates dropped to 4.2 in 2012 from 13.4 the previous year.
As for Individual Voluntary Arrangements (IVAs), the overall rate per 10,000 people in 2012 was 10.5. Easington in County Durham had the highest rate of IVAs in 2012 at 20.3. Kensington in London had the lowest rate of IVAs with just 2.1 per 10,000 of the population.
The largest increase in IVA rates was seen in West Derby, Liverpool where the rate jumped from 10.4 in 2011 to 17.3 in 2012. Rates fell the most in Penistone and Stockbridge from 17.4 in 2011 to 10.5 the following year.
A slightly higher rate of men than women were personally insolvent in 2012 with 25.3men and 23.7 women per 10,000 being insolvent. People in the age range 35-44 were the most likely to be insolvent.