Monday, 26 October 2009

Do not go to Skeggy! You might get bankrupted (according to the Times)

Bankruptcy tourism has been mentioned on this blog a couple of times before. The incidence of this relatively new pattern of bankruptcy usage may be one reason why The Times is today reporting that, "Seaside towns’ rising tide of personal insolvencies." The article notes, inter alia:
"It is a place best known as the inspiration for a host of Philip Larkin poems, its industrial heritage and unique cream telephone boxes. But today Hull is awarded a new title — the country’s insolvency capital.

Last year the northern city had the highest rate of personal insolvencies, at 26.6 bankruptcies per 10,000 adults, according to research from Wilkins Kennedy, the accountant. It was one of several coastal and seaside towns uncovered as the places where people were most likely to declare themselves bust. Plymouth registered 26 personal insolvencies per 10,000 adults, Poole, in Dorset, 22.4 and Bournemouth, its neighbour, 22.1.

Overall, the average rate of personal insolvencies in coastal towns was almost one third higher last year than the national average at 20.6 per 10,000 adults, compared with 15.7 across the country. Coastal cities accounted for seven of the ten towns and cities with the highest bankruptcy rates in the UK.

Among the UK’s 50 largest towns and cities, Cardiff is the only coastal city with a personal insolvency rate lower than the UK national average."

Bankruptcy tourism may be one driving factor between the local incidence of higher bankruptcy use in sea side towns. As the article notes the incidence of older individuals may also have an impact. Either way, the findings of this survey may have a negative effect on so called "Staycations", especially those by the sea. Any trips to Skegness (pictured) may have to be postponed!

Picture Credit: http://expressionschool.co.uk/newsdesk/photos/skegnessPA310305_330x450.jpg

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