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CCCS reports increase in personal insolvencies



There has been a sharp rise in the number of people entering into personal insolvency, it has been suggested.

According to the Consumer Credit Counselling Service (CCCS), over the course of last year it recommended insolvency to 39,663 of its clients.

In addition, it suggested bankruptcy to 20,659 people in 2009 and individual voluntary arrangements (IVAs) to 11,877 individuals.

The CCCS - which is a registered charity providing people in financial difficulty with free, impartial and realistic advice - recorded an overall increase in insolvency recommendations of 93 per cent during the 12-month period.

Its director of external affairs Delroy Corinaldi said: "Although there has recently been positive signs in the economy, our figures highlight the high numbers of people with unmanageable debt, for which insolvency is the most appropriate solution."

He added that, while the CCCS anticipates there will be many more insolvencies this year, updates to the IVA protocol should make the process smoother for some people.
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