POWYS BANKRUPTCY AND INSOLVENCY RATES ALARMING - WILLIAMS AND ÖPIK (Montgomeryshire Liberal Democrats)

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Montgomeryshire Liberal Democrats <montlibdems@gmail.com>

POWYS BANKRUPTCY AND INSOLVENCY RATES ALARMING - WILLIAMS AND ÖPIK

March 5, 2008 5:01 PM

POWYS BANKRUPTCY AND INSOLVENCY RATES ALARMING - WILLIAMS AND ÖPIK

Figures released today by the Insolvency Service show a huge rise in the number of bankruptcies and Individual Voluntary Arrangements (IVAs) in Powys.

The figures released show regional insolvency and bankruptcy figures for 2000 to 2006

The figures reveal:

• There were 75 IVAs in Powys in 2006 - a 295% increase on 2000 and a 114% increase on 2005.

• There were 90 bankruptcies in Powys in 2006 - an 80% increase on 2000 and a 17% rise on 2005.

Commenting, Roger Williams MP, Liberal Democrat MP for Brecon and Radnorshire, said:

"These latest figures on the number of people in Powys going into bankruptcy or turning to IVAs are very concerning.

"Many vulnerable people are easily exploited by credit and loan companies, and unable to manage their debt effectively.

"The Government and the financial services sector need to join forces on this and stump up money to fund a comprehensive advice service to assist people with financial problems.

"Without swift action being taken, especially when you consider the concern about a future recession, the number of people affected by financial difficulties will grow even more severely."

Commenting, Lembit Öpik, Liberal Democrat MP for Montgomeryshire, said:

"The culture of irresponsible lending and lack of financial understanding is strongly highlighted in Powys.

"I sense that this number will only increase without a determined effort by the Government to end the lack of financial knowledge amongst borrowers.

"Liberal Democrats would tackle this problem by creating a network of financial advice centres, easily accessible to the general public and free to the user."