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Deloitte predicts in excess of 30,000 personal insolvencies in Q3

Ski industry to face lean season

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Speaking ahead of the release of tomorrow’s national insolvency statistics, Louise Brittain, partner in Deloitte’s Contentious Insolvency Group, comments: “We predict that for the second successive quarter the number of people filing for personal insolvency in Q3 will exceed the 30,000 mark. This figure is staggering, and unfortunately the end is not in sight. I fully expect that by the year end, 2009 will have broken all personal insolvency records, with the total number of petitions likely to exceed the 130,000 mark.

“As consumers have dug in for the downturn, they’ve cut back on luxuries, with any extra cash being saved or used to repay debt. As such, popular discretionary spend industries have felt, and will continue to feel, the pinch. Recent consumer research from Deloitte showed that 50% of people are spending less this year on entertainment and leisure. The ski industry will be hit particularly hard this season and for some it will certainly be a lean Christmas, with a return to more traditional family-orientated activities.

“The variety of cases we will see will change. There will be mix of sole traders and consumer credit cases, with creditor petitions also rising. Those individuals with high credit card debt and those who have lost or have had to reduce their income will find their mortgage repayments increasingly burdensome, particularly if they are locked into fixed rate mortgages. The government’s debt relief order initiative has become more popular, and will account for a proportion of the personal insolvency figures.”

ends

Notes to editors

In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms.

The information contained in this press release is correct at the time of going to press.

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