MORE than 1,300 people in Dorset were involved in insolvency proceedings after they became unable to pay their debts, figures reveal.

The latest breakdown by council areas shows the number of personal insolvencies in the county rose slightly from 1,312 in 2013 to 1,324 between 2013 and 2017.

There was a sharper rise in Weymouth and Portland, where the number of personal insolvencies was up from 141 to 164.

Last year, it was revealed that the number of people in the UK facing insolvency was on course to reach its highest level for more than a decade by the end of 2019.

Duncan Swift, president of the insolvency and restructuring body R3, said then that the figures were a “worrying insight into the state of personal finances” and that low wage rises had left households vulnerable.

The 2017 figures, broken down by council ward, show that in four years, insolvencies rose from five to 14 in both the Tophill West ward of the former Weymouth and Portland Council and in Weymouth East. In Upwey and Broadwey, the figure rose from seven to 12 and in Underhill it was up from 13 to 21.

In West Dorset, personal insolvencies sell fell from 232 to 223 in the period.

However, there was a sharp rise from 13 to 24 in Dorchester West, and from seven to 13 in Lyme Regis and Charmouth.

In North Dorset, insolvencies rose only slightly from 92 to 94, with the figure dropping sharply in Gillingham Town from 17 to nine and in Blandford Central from 13 to nine.

In Purbeck, insolvencies rose from 70 to 79. Swanage North saw its insolvency cases quadruple from two to eight, while Lulworth and Winfrith saw the number rise from two to seven. In Bere Regis, the numbered doubled to eight.

Elsewhere in the county, Bournemouth saw its number of insolvency cases rise from 328 to 370, while Poole, Christchurch and East Dorset all saw falls.

Around half of the insolvency cases in most areas were individual voluntary arrangements (IVAs). IVAs involve the insolvent person offering a repayment plan, which usually sees them pay less than they owe. Such plans have to be backed by three quarters of creditors voting at a meeting.

The other two kinds of insolvency proceedings are debt relief orders and bankruptcy.

Bankruptcy has a long-term affect on a person’s life and disqualifies them from being a company director or borrowing more than £500 without telling the lender about their bankruptcy.

A debt relief order, for people with debts under £20,000 and few assets, prevents creditors recovering their money without permission from a court. The borrower is usually discharged from their debts after 12 months.

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