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Personal insolvencies down by 10.2%

Personal insolvencies down by 10.2%

Category: Debt

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

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 It is now over 6 months old so the content may be out of date.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.

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