A tale of two decades

Based on today’s official insolvency statistics, we now know that there have been over one million personal insolvencies in England and Wales in the last 10 years – compared to just 287,000 in the preceding decade. Personal insolvencies have therefore increased more than threefold from one decade to the next.

What made the difference?
The perfect storm of a massive increase in the supply of credit combined with government policy designed to remove the stigma of bankruptcy. During the last decade the Enterprise Act was fully in force – a piece of legislation designed to foster the rescue culture, that which reduced the normal duration of bankruptcy from three years to one year. These figures show that the stigma of bankruptcy has indeed gone, while also providing a stark illustration of the huge debt crisis that has afflicted England and Wales.


Jeremy Willmont

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Restructuring & insolvency