Insolvencies Falling South of the Border
April 29, 2015
Insolvency rates among individuals living in England and Wales fell to their lowest levels since 2005 during the first three months of this year.
That’s according to the latest data from the Insolvency Service, which recorded a total of 20,826 people entering some form of insolvency during the first quarter.
The figures follow just a few weeks after similarly positive numbers were released in relation to personal insolvency rates in Scotland, which reached their lowest levels in 10 years at the end of March.
According to the Insolvency Service, there was a drop of 18.6 per cent in the number of people in England and Wales who entered insolvency between the first quarters of this year and last.
The most popular form of insolvency in England and Wales between January and March of this year was Individual Voluntary Arrangements (IVAs), which function much in the same way as Trust Deeds in Scotland.
A year-one-year decline of some 23.5 per cent was recorded in the number of people south of the border entering IVAs in the first quarter. As a result, IVA rates are now at their lowest levels since 2008, with bankruptcy rates having also continued to decline in the early months of 2015.
Of the 20,826 cases of insolvency recorded in England and Wales in the first quarter of this year, 4,209 were bankruptcies, 10,405 were IVAs and 6,213 were debt relief orders. Individual insolvencies have been on a downward trend since 2010 in both countries.
“With levels of personal borrowing growing rapidly once again, the next government and lenders must ensure that the mistakes of the pre-crisis credit boom are not repeated,” said Peter Tutton, from the debt charity StepChange, in response to the latest figures.
“Our concern is that growing levels of consumer credit will be followed by growing numbers of people falling into problem debt,” he said in a statement.
Earlier this month, the Accountant in Bankruptcy published figures showing that there was a 19.1 per cent fall in the overall number of people in Scotland entering some form of insolvency in the 12 months prior to the end of March.
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