Aug 12 2010: Warning on South Yorkshire insolvency problems

SOUTH Yorkshire insolvency expert Paul Moorhead has warned that the full impact of the economic downturn in the region has not yet been felt.
Official figures released by the Government’s Insolvency Service show a five per cent increase in the number of people getting into serious financial difficulties in the last three months.
Although the number of bankruptcies has dropped by nearly 20 per cent in the past year, the overall number of people becoming insolvent has increased as greater use is made of alternative ways of tackling high debt levels.
Commenting on the figures, licensed Insolvency Practitioner Paul Moorhead, of Moorhead Savage, said: “It is clear that many people are struggling to cope with the effects of the downturn and record numbers are becoming insolvent.
“Job losses and cuts in overtime payments are making life difficult for households.
“This means that debt that was previously affordable can become a real problem. And as public sector spending cuts start to kick in, the situation is likely to get even worse.”
In the first six months of 2010, over 70,000 people have become insolvent – the equivalent of a town the size of Barnsley or Chesterfield.
Moorhead Savage has seen such a sharp increase in enquiries from across South Yorkshire about handling insolvency that new staff is being taken on to deal with the extra workload.
“The cost of becoming bankrupt has increased in recent months and this may have encouraged people to look at alternatives,” said Paul.
“In particular, the new Debt Relief Order has become more popular since it was introduced last year.
www.moorheadsavage.co.uk