April 5, 2022 7.00 am This story is over 23 months old

North East Lincolnshire worst in country for bankruptcy and insolvency

Rising insolvency rates across Lincolnshire
| Photo: Adobe Stock

North East Lincolnshire leads the country with the highest rate of insolvent and bankrupt people who are unable to pay their bills.

A surge of money problems in the area saw 588 people declare themselves insolvent in 2021, new government figures show. This means they have no way to pay back their debts.

North East Lincolnshire was the worst area in the country, with 47.1 people in every 10,000 adults. It saw the biggest rise per person of any local authority compared to the previous year.

The area also had the unfortunate honour of having amongst the most bankruptcies per person in 2021. 42 people declared themselves bankrupt, behind only Torbay, Boston and Wyre.

Many people faced loss of business or employment during the Covid pandemic. Rising energy costs means that the next year is also likely to challenging for lots of local residents.

Insolvent people can enter into an IVA insolvency voluntary agreement as a means of repaying creditors some of what they are owed. 2021 saw North East Lincolnshire dethrone Blackpool, which had been at the top of this table for five years.

A total of 463 local residents entered IVAs (37.1 per 10,000) last year. This was a jump from just 23.6 per 10,000 five years ago.

The local insolvency rise is in stark relief to the national rates which have fallen for the second consecutive year. The government believes this is due to the extra support for struggling businesses during the Covid pandemic.

The areas with the highest rates are mainly in the north or north east, with Hull, Halifax and Mansfield all recording poor numbers. Meanwhile, the areas with least insolvencies tended to be in London and the south.

The Insolvency Service adds: “Insolvency rates were highest for adults between 25 and 44 and lowest for adults aged 65 and over. This trend has been similar since 2006. However, the long-term trend does show an increase in insolvency rates for younger adults (18 to 34 year olds) and a decrease for older adults (55 years and older).”