In Northern Ireland the number of people going bust is rocketing says an economist as the human recession takes it’s a hard toll. Over 690 insolvencies were recorded in the province in the form of individual voluntary arrangements and bankruptcy orders from creditors all from January to April of this year in comparison to only 550 in 2010 during the same period.
In 2010 the peak of 2460 was reached, a record, which was a 19% increase from the same time the year before. The order lasts for one year. At times if the individual is faced with a great deal of debt he can agree to payment plans with his/her creditors that is known as individual voluntary arrangements.
Chief economist Richard Ramsey of Ulster Bank has said that because of high unemployment and the high cost of living more people were going bankrupt. The situation is not unexpected and is further evidence that even though a few are saying there is a recovery in some sectors of the economy, there is not sign that the human recession will end soon. Some fear the worst has yet to come with rising fuel costs, high living costs and the increase in VAT.