Debt-ridden young people in Kirklees are declaring themselves insolvent before they reach their mid-twenties.

New data shows a total of 821 people in the borough either went bankrupt, took on a debt relief order (DRO) or accepted an individual voluntary arrangement (IVA) to manage their debts in 2017.

Of those, 44 were aged under 25.

Twenty-one of those youngsters took on an IVA, while 22 accepted a DRO. One was declared bankrupt.

Across Kirklees a whole, one in every 412 adults of all ages fell into individual insolvency in 2017.

The national average for England and Wales was one in 469.

Stoke on Trent had the highest rate, with one insolvency for every 223 adults living in the city.

In some parts of London and the affluent south - such as Kingston upon Thames - the rate was as low as one in 1,111.

Money problems are affecting hundreds in Kirklees
Money problems are affecting hundreds in Kirklees

The data was published by The Insolvency Service under Freedom of Information laws.

There are various insolvency options open to people who cannot afford to service their debts.

One is bankruptcy, which can be entered voluntarily or forced by a creditor.

Anyone declared bankrupt has their bank accounts frozen and all assets - including property - sold off to pay debts.

The remaining debt is then wiped, unless the person’s income rises high enough for them to pay back a monthly sum.

Bankruptcy generally lasts for a year but it remains on credit files for six years, making it harder to get future loans and other financial services.

Across Kirklees a whole, one in every 412 adults of all ages fell into individual insolvency in 2017

Another option is an IVA - a formally binding agreement to pay back debts over a period of time.

Repayment plans, which typically last five years, are drawn up with an insolvency practitioner and then put to the creditors.

If the payments do not cover the debts in full, the remainder is written off.

Not everyone can get an IVA, however, and not all types of debt are covered.

A third option are DROs, which are only available to people who owe less than £20,000.

The orders essentially freeze debts for a year, at the end of which they are written off.

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The orders can cover credit card debt, loans, hire purchase deals and business debts.

They do not cover court fines, student loans or child support payments.

Anything bought with a loan or credit agreement that forms part of a DRO has to be handed back, and once again it stays on a person’s credit file for six years.

Of the 821 people made insolvent in Kirklees in 2017, 431 are known to have agreed IVAs, 282 are known to have agreed DROs, and 106 are known to have gone bankrupt.