One person a day in York will become insolvent

AT least one person a day in York will become insolvent this year and lives are being torn apart as the economic crisis continues, an expert has predicted.

More than 250 people in York became bankrupt last year and more than 100 were the subject of debt relief orders (DROs) declaring them insolvent.

This year, numbers are expected to rise further, York Citizens Advice Bureau (CAB) has said, with roughly the same number going bankrupt and about 125 expected to take out DROs.

Many people are suffering mental health problems and even attempting suicide as a result of their difficulties, the organisation said.

Pay day loans, changing circumstances, changes to the benefit system and the impact of the recession on self employed people are among the reasons given for the rise.

Kevin Butler, a debt case worker for York CAB, said: “I have seen several people in the past 12 months who have tried suicide because of their debts. A study has shown that about 50 per cent of people in debt have some kind of mental health problem. It’s something we see.

“We see a lot of relationships that have ended and lack of money is a big factor in that.”

DROs – which write off debts of less than £15,000 for those with a low income – are becoming increasingly common as the administration costs £90 compared with bankruptcy which starts at about £500. Both bankruptcy and DROs stay on an individual’s credit rating for six years.

In Selby, 28 people took out DROs and fewer than 20 filed for bankruptcy in 2012.

A Selby CAB spokesman said: “We fear an even bigger percentage increase in those needing DROs or bankruptcy over the next few years because of the prevailing economic climate”.

In Ryedale, a CAB spokesman said bankruptcy was not being used as often as DROs, which were on the rise.

Yvonne Wood, a debt advisor at the branch, said she expected changes to the benefit system this year would worsen the situation.

Smaller numbers of people are also expected to enter into other formal insolvency orders to pay off some of their debt over a fixed period, York CAB said.

People struggling with debt or would like help budgeting can attend a drop-in session at York CAB in Blossom Street on Monday, Tuesday or Thursday mornings, or phone 08444 111 444.

 

Case study

WHEN former serviceman John Taylor* retired, he found it impossible to continue paying his credit card and loan debts.

The York man found he could manage only £1 a month to creditors who continued to pressure him for the same payments and to threaten him with legal action.

Mr Butler said: “He was very worried because creditors were still demanding the same amount of money. Creditors are very good at threatening people with action they are allowed to take, but often they don’t do it.”

Having spoken with advisors at York CAB, it was decided a debt relief order would be the best option. As he struggled to pay the £90 fee, the Royal British Legion stepped in to pay the costs. Mr Taylor said his life had been transformed by the order.

•Name changed to protect anonymity.

Comments (9)

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10:20am Mon 21 Jan 13

redbluelion says...

i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days
i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days redbluelion
  • Score: 0

12:23pm Mon 21 Jan 13

yorkborn66 says...

What bothers me most is the amount of extra work C A B, have to try and cope with.
Due to serious illness I was signed off work. I contacted the Dept for Work and Pensions, for information regarding claiming sickness Benefit. (Or whatever they call it now)
I could not understand why when you phone them, the person answering is called an “advisor”. When I asked for information and the criteria, I was told that I had to contact C A B, as they could not comment on individual cases
The same applied when I went to the job centre.( Complete joke)
My point is how many people seeking benefit advice have to call and arrange meetings with the C A B?
It is like myself advertising as a bricklayer. A customer accepts my previous quote. I turn up with the bricks, sand, cement etc, sit down in a chair and tell the customer to build it whilst I watch, and still charge them.
DWP, Can I have a job answering your phones from my home please?
Before the usual comments, cannot wait to get back to work (first time off work in 30 years), but whilst doing as my told at home, I am sure I can tell people to call the C A B to maximize their workload.
What bothers me most is the amount of extra work C A B, have to try and cope with. Due to serious illness I was signed off work. I contacted the Dept for Work and Pensions, for information regarding claiming sickness Benefit. (Or whatever they call it now) I could not understand why when you phone them, the person answering is called an “advisor”. When I asked for information and the criteria, I was told that I had to contact C A B, as they could not comment on individual cases The same applied when I went to the job centre.( Complete joke) My point is how many people seeking benefit advice have to call and arrange meetings with the C A B? It is like myself advertising as a bricklayer. A customer accepts my previous quote. I turn up with the bricks, sand, cement etc, sit down in a chair and tell the customer to build it whilst I watch, and still charge them. DWP, Can I have a job answering your phones from my home please? Before the usual comments, cannot wait to get back to work (first time off work in 30 years), but whilst doing as my told at home, I am sure I can tell people to call the C A B to maximize their workload. yorkborn66
  • Score: 0

12:47pm Mon 21 Jan 13

Garrowby Turnoff says...

redbluelion wrote:
i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days
Doesn't sound too bad.

BUT

When you re-appear after your incarceration all the debts are still there. They're not paid up in respect of time served inside. No sir, you do the time and the wolves are waiting for you to reappear offering you payday loans at 4000% APR, or gambling websites or crime as the only way out. And, forget getting employment as you've got a criminal record.

Jail is not a good idea.
[quote][p][bold]redbluelion[/bold] wrote: i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days[/p][/quote]Doesn't sound too bad. BUT When you re-appear after your incarceration all the debts are still there. They're not paid up in respect of time served inside. No sir, you do the time and the wolves are waiting for you to reappear offering you payday loans at 4000% APR, or gambling websites or crime as the only way out. And, forget getting employment as you've got a criminal record. Jail is not a good idea. Garrowby Turnoff
  • Score: 0

1:48pm Mon 21 Jan 13

nearlyman says...

I thought we had done away with debtors prisons years ago. Is it not just fraudulently incurred debt that attracts the prison sentence ?
I thought we had done away with debtors prisons years ago. Is it not just fraudulently incurred debt that attracts the prison sentence ? nearlyman
  • Score: 0

3:38pm Mon 21 Jan 13

Kevin Turvey says...

‘nearlyman says... 1:48pm Mon 21 Jan 13
I thought we had done away with debtors prisons years ago. ‘


Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty!

Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority!

Must be something wrong with me?

Opening for abuse not offered!
‘nearlyman says... 1:48pm Mon 21 Jan 13 I thought we had done away with debtors prisons years ago. ‘ Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty! Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority! Must be something wrong with me? Opening for abuse not offered! Kevin Turvey
  • Score: 0

4:00pm Mon 21 Jan 13

yorkborn66 says...

Kevin Turvey wrote:
‘nearlyman says... 1:48pm Mon 21 Jan 13
I thought we had done away with debtors prisons years ago. ‘


Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty!

Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority!

Must be something wrong with me?

Opening for abuse not offered!
You must have made this comment to create some attention to yourself.
What if I was Black, Gay and unemployed due to redundancy because of the recession I did not contribute to?
“Must be something wrong with me?” Attitude for a start!
What color of skin and sexual orientation a person has, is not a common denominator to been insolvent or a drug user or criminal.
I am white and married; (wife not white) people like you need education and rehabilitation.
You should call yourself something fitting like “Richard Head “
[quote][p][bold]Kevin Turvey[/bold] wrote: ‘nearlyman says... 1:48pm Mon 21 Jan 13 I thought we had done away with debtors prisons years ago. ‘ Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty! Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority! Must be something wrong with me? Opening for abuse not offered![/p][/quote]You must have made this comment to create some attention to yourself. What if I was Black, Gay and unemployed due to redundancy because of the recession I did not contribute to? “Must be something wrong with me?” Attitude for a start! What color of skin and sexual orientation a person has, is not a common denominator to been insolvent or a drug user or criminal. I am white and married; (wife not white) people like you need education and rehabilitation. You should call yourself something fitting like “Richard Head “ yorkborn66
  • Score: 0

10:04pm Mon 21 Jan 13

MouseHouse says...

redbluelion wrote:
i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days
Little, if any, chance of getting a single cell for a debt related offence. Our gaols are busy places! More than likely you'll be shacked up with some sweaty, thieving, foul mouthed oaf who thinks competitive wind breaking is a sport. Either that or one of our expenses sponging ex-MPs.
[quote][p][bold]redbluelion[/bold] wrote: i see it this way if you don't have money then you can't pay it...stuff em if you end up in jail..not such a bad thing..3 hot meals a day..free heating..free hot running water..a nice cosy room to your self..with a nice color tv..to pass the days[/p][/quote]Little, if any, chance of getting a single cell for a debt related offence. Our gaols are busy places! More than likely you'll be shacked up with some sweaty, thieving, foul mouthed oaf who thinks competitive wind breaking is a sport. Either that or one of our expenses sponging ex-MPs. MouseHouse
  • Score: 0

8:54am Tue 22 Jan 13

glyn says...

nearlyman says... 1:48pm Mon 21 Jan 13
I thought we had done away with debtors prisons years ago. ‘


Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty!

Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority!

Must be something wrong with me?

Opening for abuse not offered!


Totally agree. I am one of the minority because I have worked hard, been careful of debt and found work to bring up/ support my family when I have been made redundant. Avoid debt that is the key. People abuse it, can`t (wont) pay it back and declare themselves insolvent.
nearlyman says... 1:48pm Mon 21 Jan 13 I thought we had done away with debtors prisons years ago. ‘ Should bring them back to my mind, but then there would only be about 10% of the population still out with their liberty! Us solvent, taxpaying, non-debt ridden, white, straight, working, non drink or drug problem, non criminal record people are very much in the minority! Must be something wrong with me? Opening for abuse not offered! Totally agree. I am one of the minority because I have worked hard, been careful of debt and found work to bring up/ support my family when I have been made redundant. Avoid debt that is the key. People abuse it, can`t (wont) pay it back and declare themselves insolvent. glyn
  • Score: 0

10:33am Wed 23 Jan 13

Kevin Turvey says...

‘glyn says... 8:54am Tue 22 Jan 13

Totally agree. I am one of the minority because I have worked hard, been careful of debt and found work to bring up/ support my family when I have been made redundant. Avoid debt that is the key. People abuse it, can`t (wont) pay it back and declare themselves insolvent.’

Unfortunately its values like ours that have disappeared and short termism/I want it today mentality but pay through the nose for it in the long term is taking over!

The banks must be p!ssing themselves for the interest they get in from these idiots until they go bankrupt because they can no longer service their own run up debt of course!

Because it is so easy to go bankrupt and there is little or no stigma, it’s an easy way out of people’s responsibilities, so they can easily live beyond their means and get away with it.

Some of them time and time again!

System is extremely broken!
‘glyn says... 8:54am Tue 22 Jan 13 Totally agree. I am one of the minority because I have worked hard, been careful of debt and found work to bring up/ support my family when I have been made redundant. Avoid debt that is the key. People abuse it, can`t (wont) pay it back and declare themselves insolvent.’ Unfortunately its values like ours that have disappeared and short termism/I want it today mentality but pay through the nose for it in the long term is taking over! The banks must be p!ssing themselves for the interest they get in from these idiots until they go bankrupt because they can no longer service their own run up debt of course! Because it is so easy to go bankrupt and there is little or no stigma, it’s an easy way out of people’s responsibilities, so they can easily live beyond their means and get away with it. Some of them time and time again! System is extremely broken! Kevin Turvey
  • Score: 0

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