Posted on November - 03 - 2011
Slight dip in personal insolvencies
Personal insolvencies fell slightly in the three months to the end of September, according to figures released this morning by the Insolvency Service.
The number of people declared insolvent fell by 1% from the previous quarter to 30,219. This was a decrease of 11.0% on the same period a year ago. Personal insolvencies rose in the three months to the end of June to 30,513, which was up from 30,145 in the first quarter of this year.
The last quarter’s personal insolvencies were made up of 9,567 bankruptcies, 13,048 Individual Voluntary Arrangements (IVAs), and 7,604 Debt Relief Orders (DROs). Some 79% of bankruptcies were made on the petition of the debtor, down from 83% in the previous quarter, suggesting that lenders are abandoning forbearance.
Company insolvencies rose by 2% to 1,253 in the three months to the end of September.
Speaking to the Press Association before the figures were released, David Kerr, chief executive of the Insolvency Practitioners Association, said: Even if the numbers dont show a remarkable change, it does not necessarily mean there isnt a problem brewing.
If people are beginning to struggle because of the economic circumstances generally, job losses, increased costs of living, you would expect that to work its way through to the personal insolvency figures.
The Consumer Credit Counselling Service (CCCS) has said personal insolvencies are likely to rise due to stagnant wages, high inflation and redundancies.
Delroy Corinaldi, director of external affairs at CCCS, said: There are millions of people teetering on the brink financially, whose household budgets are getting harder to manage every month.”
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