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Number of Doncaster people declared as insolvent has increased by over 35 per cent in two years

In 2017, 27.1 adults per 10,000 were declared insolvent in Doncaster, according to Insolvency Service figures.
In 2017, 27.1 adults per 10,000 were declared insolvent in Doncaster, according to Insolvency Service figures.

The rate of personal insolvencies in Doncaster has increased by almost 40 per cent over the last two years, official data has revealed.

Insolvency is when someone can not pay their debts and has to arrange a plan with an official body to pay off creditors. This can include being declared bankrupt.

In 2015, 19.9 adults per 10,000 were declared insolvent in Doncaster, according to Insolvency Service figures.

However by 2017 that figure had risen to 27.1, an increase of 36.2 per cent. In the town, there were 658 new insolvency cases last year, up from 525 the year before.

The Donaster figures are, however, still below the national average for England and Wales, where approximately 21.4 adults in every 10,000 are declared as insolvent.

The figures include people who have been declared bankrupt, those who have been given debt relief orders (DROs), which are a form of relief for people on low incomes, and those with individual voluntary arrangements (IVAs), which are a voluntary way of paying back creditors.

Overall in England and Wales the insolvency rate increased for the second successive year last year.

The data also revealed that women are more likely to be insolvent than men.

Young people are also struggling, with the biggest percentage of new cases among 25 to 34-year-olds.

Graham O’Malley, debt expert at Citizens Advice, said: “Unmanageable debt puts people at risk of insolvency that, in the most serious cases, can result in them losing their home.

“There’s debt advice out there, from organisations such as Citizens Advice, that people do not have to pay for.

“It’s so important people with money problems make sure they get this impartial advice before they even think about going down the insolvency route."