The North of England experienced the highest number of personal insolvencies in 2009, while London experienced the lowest, according to figures released by the Insolvency Service.
There were 38.1 personal insolvencies per 10,000 adults in the North East during 2009, higher than the national average of 31.1 and considerably higher than the lowest level of 19.6 recorded in London. The two locations were also the areas for the highest and lowest rates of personal insolvencies the year before in 2008, showing it is a recurring trend.
Insolvency trade association R3 recently released its “bankruptcy map” which revealed that there was a seventy per cent higher risk of becoming bankrupt in the North than in the South.
The research showed there were almost six thousand (5,923) new personal insolvency cases in the North East during which means that for every ten thousand people, 29 of them became insolvent. The South-West of England remains the second highest area for personal insolvencies, with 35.9 personal insolvencies per 100,000 of the population.
Steven Law, R3’s president, said: “Prior to the recession, the North East had a higher than average unemployment rate and the region’s construction industry was badly hit during the economic downturn so it is understandable that personal insolvencies are more common there.
“Londoners are least likely to become insolvent as there are more employment opportunities in the region. Unfortunately, with the announcement of public sector job cuts, it is likely that the figures will worsen, especially in areas such as the North East where public sector employment is high.”