Insolvencies down 10%
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.