More people in Mansfield fell into debt during pandemic
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The Money Advice Trust said these measures offered a ‘lifeline’ to many people across England and Wales, but warned insolvency levels might rise again this winter.
People who take out formal insolvency solutions, such as bankruptcy or a voluntary arrangement to pay off their debt, are added to the Individual Insolvency Register.
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Hide AdInsolvency Service data shows 308 people fell into debt in Mansfield in 2020, compared with 305 in 2019, bucking the national trend.
The number dropped in Ashfield, however, from 307 in 2019 to 295 last year, and also in Newark & Sherwood, from 297 to 290.
Of the cases of insolvency in Mansfield last year, 240 saw the person enter into an individual voluntary agreement with their creditors, while 17 went bankrupt.
A further 50 applied for a debt relief order, which allows those who cannot afford to pay their debt to stop paying for a period, after which the debt is written off.
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Hide AdAcross England and Wales, 111,400 people went insolvent in 2020 – down from 121,900 in 2019 and the first annual fall in five years.
Lifeline
The Insolvency Service said this was likely to have been partly driven by ‘enhanced government financial support’ during the coronavirus pandemic.
The MAT said measures, such as the furlough scheme have provided a ‘welcome lifeline’ to many.
However, Jane Tully, trust director of external affairs and partnerships, said: “With many facing a difficult winter ahead and the full impact of the pandemic still to materialise on household finances, it is likely insolvency levels will rise again. It is vital people are able to access safe routes out of problem debt.”
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Hide AdA Government spokesman said it paused evictions and extended notice periods during the pandemic, and introduced the Breathing Space scheme to help people in problem debt.
He said: “We’re continuing to support people with the cost of living, by increasing the National Living Wage, and this year maintaining the increase to Local Housing Allowance for private renters on Universal Credit and Housing Benefit.
“As we return to normal it is right we focus our support elsewhere, including ensuring every young person in the UK gets the backing they need to fulfil their potential.”