A recent Times column by Stephen Gerlis, a District Judge at Barnet County Court, looks at the risks people in debt face, and the powers that creditors and courts have to take steps to recover that debt.

With 10,000 people going insolvent every month, a 65% rise in mortgage repossessions, and the UK’s population in a combined £1,300bn of personal debt, the county courts are kept busy.

Interest rate rises mean higher monthly mortgage repayments and, with these increased expenses not being offset by similar rises in incomes, people face an increased risk of losing their homes. More »

Figures from property research firm Hometrack suggest that the housing market remains buoyant despite recent interest rate rises, with the average house price rising by 0.7% in February,

The average home is now worth £172,000, and the rise in February means that annual house price inflation is now at 6.4%, the highest level since June 2003.

Demand for housing continues to outstrip supply - Hometrack reported that, while the number of homes registered with estate agents rose by 14% in February, the number people wanting to buy rose by 23%. More »

According to figures from the Council of Mortgage Lenders (CML), the number of properties repossessed by lenders rose by 9% in the second half of 2006.

In total, 17,000 homes were repossessed in 2006, the highest number for six years. In the second half of the year, 8,860 were taken back by lenders, up from 8,140 in the six months to the end of June.

This equates to roughly 1 in 690, or around 0.15% of current home loans. More »

The BBC carried a story recently on a Torquay woman who lost out on £22,000 after her flat was repossessed and then auctioned by receivers.

The flat was sold by receivers at an auction in London for just £60,000, but just six weeks later it was sold on at another auction for £82,000, meaning that Mrs Smith lost out on £22,000.

This practice, which is standard for borrowers who are unable to stop the repossession of their homes, reveals how some borrowers fail to get the best price for homes when the worst happens, and they are unable to meet mortgage payments. More »

With the recent interest rate rise, and credit card bills from Christmas arriving through people’s letterboxes, the first few months of the year often see a hangover from Christmas spending, mortgage repayments are expected to suffer the most.

Research shows that more than 430,000 personal loans will be taken out by the end of March to help consolidate debts.

In addition, it is predicted that 30,000 will become insolvent in the first three months of this year, with a third of these going bankrupt or entering Individual Voluntary Arrangements (IVAs) by April. More »