Scilly And Cornwall Has Highest Rate Of Bankruptcy

Scilly and Cornwall has the highest number of people declaring bankruptcy of any area in England.

Figures released by the national debt charity Consumer Credit Counselling Service state the most recent available figures, from 2009, show 24 people per 10,000 went bankrupt in our area.

This compared to Greater London, which had the lowest number of people going bankrupt at 11 people per 10,000.

Una Farrell from the charity says the stigma of bankruptcy can be a problem. The build up to the point when someone is declared bankrupt is often incredibly stressful, but she says there is light at the end of the tunnel.

Bankruptcy is discharged after a year and people can then start to rebuild their lives.

Una says that, according to recent reports, Scilly is one of the most entrepreneurial areas in the country with a high number of self-employed people here.

But that means personal and business finances tend to be tied up together, which can make it difficult if things go wrong.

And because the area lacks any major urban centres, it’s much harder for people to move on to new employment if they lose their job.

The Council’s Strategic Investment Manager, Diana Mompoloki, says most of our businesses are very small, sole-trader operations and that could have an impact on cash flow and resources.

The Charity that undertook the survey also believes people are waiting longer to seek debt help here and are deeper into their debt problem when they do.