Insolvency Service unveils bankruptcy and insolvency figures

| August 5, 2011 | 0 Comments

Figures published by the Insolvency Service have revealed personal insolvencies rose 1% in the April to June period.

According to the Insolvency Service, there were 30,513 personal insolvencies in the three-month period – up from 30,162 in the three months to the end of March.

While this is a slight rise, the total is actually 12% lower when compared with the same period a year ago – when insolvencies were running at an all-time high.

In the meantime, the number of bankruptcies and Individual Voluntary Arrangements (IVAs) fell.

Bankruptcies were almost 26% lower on the year while IVAs were down almost 10%.

However, debt relief orders (DROs) were up by 15.3%. DROs were introduced in April 2009 and allow individuals with debts of less than £15,000 and a low income, to write off their debts rather than being declared bankrupt.

Meanwhile, the number of businesses going bust fell by 5% to 1,232 in the three month period, however, they were 22% higher on an annual basis.

Louise Brittain, insolvency partner at accountancy firm Deloitte’s, comments: “Whilst insolvencies are still commonplace, we are not seeing the severity that we have seen in recent years.

“Low interest rates have gone a long way in helping individuals to keep their finances at a manageable level,” she added.

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