In­sol­ven­cies down 10%

Birmingham Post - - PERSONAL FINANCE -

PER­SONAL in­sol­ven­cies fell back from a six-year high in the third quar­ter of this year, of­fi­cial fig­ures show.

Across Eng­land and Wales, 25,151 per­sonal in­sol­ven­cies were recorded between July and Sep­tem­ber – a 10.5 per cent fall com­pared with the pre­vi­ous quar­ter when there were 28,108 per­sonal in­sol­ven­cies – the high­est quar­terly fig­ure since 2012.

The fig­ures are made up of bank­rupt­cies; debt re­lief or­ders (DROs), which are aimed at peo­ple with smaller debts which they have no re­al­is­tic prospect of pay­ing off; and in­di­vid­ual vol­un­tary ar­range­ments (IVAs), whereby money is shared out between cred­i­tors.

The In­sol­vency Ser­vice, which re­leased the fig­ures, said the fall in per­sonal in­sol­ven­cies was driven by a de­crease in IVAs, which reached a record high in the sec­ond quar­ter of this year when 17,114 were recorded, but fell by 18 per cent in the third quar­ter to reach 14,040.

Bank­rupt­cies and DROs both in­creased slightly.

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