Insolvency Service cracks down on luxury spenders

14 Jul 2017

The Insolvency Service is issuing more bankruptcy restriction orders in an attempt to clamp down on people who spend their money on luxuries such a new cars and holidays, instead of paying their debts.

During 2016-17, the Service issued 97 bankruptcy orders to penalise bankrupts for indulgent spending, up from 78 during the previous financial year.

According to official figures published in May, 24,531 individuals were subject to insolvency proceedings in the first quarter of this year, the most since the second quarter of 2014. 59 per cent were involuntary arrangements, 25 per cent were debt relief orders and 16 per cent were bankruptcies.

If you have any concerns about your personal financial situation, our partners at BM Advisory are available to assist.

As specialists in providing restructuring, recovery and insolvency solutions for businesses and individuals, we understand the issues that can impact on business performance and success, and find innovative solutions for businesses and individuals in distress.

If you would like to have a confidential discussion about any aspect of your personal financial situation or that of your business, contact Andy Pear or Mike Solomons at BM Advisory. Your initial consultation will be free of charge and without obligation, and we will discuss your individual situation and advise the best course of action. Alternatively, please contact your usual Beavis Morgan Partner.