Insolvency figures down, but don't become 'complacent' charities warn

07/11/2011

Data from the latest Insolvency Service figures reveal that personal insolvencies in England and Wales have fallen slightly in the third quarter of 2011 to 30,219, down from 30,513 in the three months up to June.

Despite this, insolvency numbers are still up on their long-term average, and debt charities have highlighted that it is wrong to become complacent about recent decreases.

Delroy Corinaldi of the CCCS said: “There are millions of people teetering on the brink financially, whose household budgets are getting harder to manage every month. They are struggling against pressures such as high inflation, wage freezes and redundancy. I fear that many will go insolvent over the next year.”

Figures show there were 9,567 bankruptcies during the third quarter of 2011, which actually constitutes a 31.2 per cent drop on the corresponding quarter in 2010. The number of IVAs, however, increased by 0.7 per cent on the same period last year to 13,048.

Debt Relief Orders also experienced a increase – rising a huge 7.6 per cent year-on-year to 7,604 during the quarter.

According to the Insolvency Service, in the 12 months to the end of September 2011 approximately one in 361 people became insolvent. This was down from one in 349 in the previous quarter, but far higher than the annual average of one in 1,655 seen over the past 25 years.

Tags; Current UK Economy, Income Worries and Debt, Debt Management and Banking,

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