Personal insolvencies down by 10.2% - Debt - News - Moneyfacts

News

Personal insolvencies down by 10.2%

Personal insolvencies down by 10.2%

Category: Debt

Updated: 03/08/2012
First Published: 03/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Despite the tough economic climate, latest figures have shown that fewer people are declaring themselves bankrupt.

There were 27,390 individual insolvencies in England and Wales during the second quarter of this year, down by 10.2% on the same period in 2011.

The number of bankruptcies and Individual Voluntary Arrangements (IVAs) fell significantly to 8,088 and 11,346 respectively.

The introduction of Debt Relief Orders (DROs) is thought to have had a positive impact on the volume of bankruptcies.

Introduced in 2009, DROs can be applied for by those on low incomes who are unable to pay off debts of less than £15,000. The orders can be a cheaper option than declaring bankruptcy, which can cost hundreds of pounds.

The figures suggest that more people are taking measures to pay off existing credit and address their debt problems, as opposed to taking out further credit.

What next?

If you are dealing with debt, read our guide: 8 steps to getting rid of debt.


Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Millennials losing sleep over debt

Money worries can keep people up at any age, but new research has found that a staggering one in four adults under 34 have lost sleep over financial troubles. Many are feeling pressure not just from their bank account, but also their loved ones.

Would you go into debt to bag a bargain?

It can be hard to resist the lure of a bargain, particularly at this time of year. However, while it should be a way to cut costs, it seems that some get carried away, and end up spending far more than they should – and get into debt as a result.

Overdraft charges add millions to problem debt

Charges on unarranged overdrafts are spiralling, says StepChange Debt Charity, adding millions to problem debt – and there are calls for them to be capped as a result.
 
Close