The number of people being declared insolvent in the West Midlands has fallen to the lowest level since before the banking collapse – but parts of the region remain among the hardest hit.
The number of new individual insolvency cases – which include people being made bankrupt or agreeing individual voluntary arrangements (IVAs) in the region stood at 11,964 in 2011 – a rate of 27.9 per 10,000 adults – down from 13,581 – a rate of 31.9 – last year. The rate is now the lowest since 2008, when it stood at 24.6 per 10,000.
The rate in the region is lower than any area outside of London, the South East and the East of England, according to Insolvency Service data.
However, some parts of the West Midlands are among the hardest hit in terms of insolvency, with people living in the Tamworth, Redditch and Cannock Chase local authorities among the most likely to be declared insolvent.
Joanna Elson, the chief executive of the Money Advice Trust, said: “Insolvency figures only represent the tip of the iceberg when it comes to the scale of debt problems. Survey data suggests around 10 million individuals in the UK find themselves in a constant struggle to manage their debts.”
In Birmingham, there were 1,860 insolvencies last year, again the lowest since 2008, with a rate of 23.6 per 10,000 adults. The rate was 20.8 in Coventry, 23.6 in Dudley, 27.3 in Sandwell, 23.4 in Solihull, 36.9 in Walsall and 31.6 in Wolverhampton.
However, company insolvencies rose by 10 per cent across England and Wales in the first three months of the year.