We see regular headlines indicating that insolvency is only for the ‘well off’, this is simply not true. The group making this statement do have an interest in such a claim because their main source of funding is going to end soon and it may be that they want state money to fill the gap which is behind the call for a state sponsored solution.
Insolvency isn’t just for the well off, we have shown in the past that it’s actually creditors who pay for the various insolvency solutions, this is a fact of accounting, not of opinion.
Perhaps the greatest testament of insolvency isn’t the numbers opting for it, we know they are low, but the fact that banks suddenly (and not coincidentally) started doing serious deals with people once it became an option.
They also ask PIP’s to run the applications past them prior to going for a full protective cert and that gives them the ability to make a better offer direct to the client – again, showing the power of the threat, so hopefully we’ll see an end to headlines like that one which are not fairly representative of the facts.