The North East has the highest insolvency rate in England and Wales
People living in the north-east of England are still the most likely to become insolvent, according to government figures.
The Insolvency Service said the North East had the highest personal insolvency rate of anywhere in England and Wales in 2012.
The region has had the worst figures each year since 2008.
The south-west of England had the next highest insolvency rate, with Torbay in Devon the worst-hit town overall.
The figures are shown on a new map, which charts rates since the year 2000.
The total number of insolvencies has been falling steadily since 2009, when the financial crisis was at its peak.
In 2012, the average rate for England and Wales was 24.5 insolvencies per 10,000 people.
That compares with an average of 30.9 in the 2009 peak.
Forms of personal insolvency
- Bankruptcy: The traditional way of escaping overwhelming debt. Ends after one year, but you are likely to lose all your assets including your house to pay something to the creditors
- Individual voluntary arrangement (IVA): A deal between you and your creditors, overseen by an insolvency practitioner. Less stigma, less chance of losing your home, but involves paying some of your debts in one go
- Debt Relief Orders: Introduced in April 2009, these allow people with debts of less than £15,000 and minimal assets to write off debts without a full-blown bankruptcy
Within the category, bankruptcies and individual voluntary arrangements (IVAs) have fallen, while debt relief orders have increased.
But the North East retains the highest overall rate, of 33.3 insolvencies per 10,000 adults.
The South West had the second highest rate, at 29.3 per 10,000.
London had the lowest number of insolvencies per person last year.
Harrow, in north-west London, was the best performing area in England and Wales, with just 9.9 insolvencies per person in 2012.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23286275#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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