I think Evan’s made the case for comparison pretty well, and, if there’s any credibility in the idea the numbers aren’t comparable, I’m sure we’ll see some of the MSM taking this angle in due course.

If you scroll down through the data you will find Figure 5 – Individual Insolvencies in England & Wales – and you will note that Bankruptcy Orders are the most numerous they have ever been since 1987.

I don’t believe that you will find any cautions about comparing the data in the release from the Insolvency Service, because they don’t believe that the data (which is actual numbers, rather than estimates) is not comparable.

Yes, IVA’s are easier than they were; yes the effect of a straightforward BO are less than they were; but to point to the bare facts that we are seeing more individual insolvencies than at any time since the introduction of the 86 Act is not ‘deceptive’ or ‘unfair’. The consequences of bankruptcy, even with the changes brought about by the 2000 and 2002 Acts, are severe – on the individuals and their families – and a personal tragedy in each and every case.

No-one I know would consider the reduction from 3 years to 1 for the time to be able to seek automatic discharge from bankruptcy as being an incentive to make yourself bankrupt. Legal changes went both ways – assisting a cooperative bankrupt and assisting creditors and trustees to deal with uncooperative bankrupts.

BTW, Insolvency forms about 40% of my practice at the Bar and I don’t believe that you would find many lawyers involved in Insolvency litigation who would say that the comparisons are ‘unfair’ …

Wouldn’t it have been more honest to link to the press release: http://bit.ly/dCL1aU

It includes some wonderful titbits you didn’t bother with, like:

“Total household borrowing currently stands at £1.5 trillion. Unsecured borrowing remained broadly constant over the past 12 months at around £230 billion (in stark contrast to the 6% growth seen in 2008). Average household debt stands at £60,000 per house made up of £50,000 in secured debt and £10,000 in unsecured debt. The average household will need to spend approximately 15% of net income just to service interest payments arising from this debt”

and

“Figures released today by the Government’s Insolvency Service revealed that levels of personal insolvency in the UK have increased for the eighth consecutive quarter and are at the highest level since records began.”

‘course focusing on those bits of the release might attract questions about how we reached that situation.

Lets not even mention the fact that PWC are a bit accountancy firm which earns lots of money from…yes, you guessed it – insolvencies!

Wonder if big accountancy firms might be keen to avoid criticism of the high level of insolvencies? Just a thought.

It’s important to be alert to these things and thankfully the blogosphere is often quick to expose the moves of sly politicians like Philip Hammond or Gordon Brown.