Suffolk insolvency rates rise as financial pressures mount

Why it matters: The rise in personal insolvencies reflects the significant impact high costs have had on people's finances, according to the Money Advice Trust, the charity that runs the National Debtline advice service.

By the numbers:

• Suffolk's insolvencies in 2024 consisted of 96 bankruptcies, 581 debt relief orders, and 864 individual voluntary arrangements

• The area had a rate of 25 insolvencies per 10,000 adults

• Women in Suffolk had a higher insolvency rate (26 per 10,000) than men (23 per 10,000)

The bigger picture: The increase in Suffolk mirrors a national trend, with personal insolvencies across England and Wales jumping 14% to nearly 118,000 last year.

Regional disparities: The figures revealed significant differences across regions:

• The North East had the highest rate at 33 per 10,000 adults

• London had the lowest rate at 15 per 10,000

What they're saying: Lyndsey Squirrell , Senior Associate in Ellisons ' Insolvency and Debt Recovery Team, said the increase across Suffolk is "sadly no surprise."

With the continuing cost of living crisis and rising inflation, many households have come under significant financial strain. Energy bills, council tax, mortgage and rent payments have all gone up, and food prices remain high. While many people have cut back on non-essential spending, for those already living within their means, that simply hasn't been possible.

We're also seeing the knock-on effect of pressure on businesses. When a company fails, it directly impacts sole traders and company directors, many of whom are now facing their own financial difficulties.

The importance of seeking early advice: "The most important message we can share is: don't ignore the problem. Early advice can open up more choices and help you avoid the worst-case scenario," Squirrell advised.

She outlined several options for those facing financial difficulties:

• Bankruptcy, which involves a public process where assets vest in a trustee

• Individual Voluntary Arrangements (IVAs), which allow formal agreements with creditors to repay debts over time, often at reduced rates

• Debt Relief Orders, Debt Management Plans, and the Breathing Space Moratorium

"Each comes with specific eligibility criteria, so it's important to seek specialist advice to understand what's right for you," she added.

Gender gap: The figures show the insolvency rate for women (27 per 10,000) was higher than for men (22 per 10,000) across England and Wales for the eleventh successive year.

Simon Trevethick, head of communications at StepChange, said the regional and gendered differences are "not a surprise".

"Whilst the drivers of debt are complex and wide, we consistently find that certain regions and demographics are overrepresented in our client base," he added.

"Specifically, women are overrepresented among people seeking debt advice, as almost two-thirds of our clients are women."

Trevethick explained: "Our client stats show that women have a higher average expenditure and a lower average income than men – meaning their ability to pay debts or seek financial support is more difficult."

He said this can be due to women being more likely to have childcare and caring responsibilities that affect their income and ability to build savings.

The bottom line: Rising insolvency rates in Suffolk highlight the growing financial pressures on local residents, with women and certain regions bearing a disproportionate burden of the ongoing cost-of-living crisis. Experts emphasise that seeking early advice is crucial for those struggling with debt.

Ellisons Solicitors

Established for 260 years, Ellisons is a top 200 UK law firm and one of the region’s oldest, most established and fastest growing firms.