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.
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