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Personal insolvencies on slight rise

November 5, 2015 | Financial Saviour

According to the latest official figures from the Insolvency Service, personal insolvencies have increased in the third quarter of 2015, but there is good news concerning the number of registered bankruptcies in the UK.

The 19,683 people who filed for individual insolvencies between July and September this year was an increase of 2.8% on the previous three months, but this was also down by 18.5% when compared to the third quarter of 2014.

This ever so slight increase has been attributed to the current number of individual voluntary arrangements, up by more than 9% on the previous quarter. These are agreements in which regular payments are made by the individual to a licensed insolvency practitioner, who then divides this money between creditors to pay off all, or part, of the individual’s debts.

Overall, however, as with individual insolvencies, these were down significantly on the same period last year.

So what about the bankruptcies?

Quite astonishingly, the latest statistics revealed that bankruptcies are at their lowest level since 1990, and a major contributing factor for this is believed to be the introduction of debt relief orders in 2009 that has coincided with a downward trend of bankruptcy orders over the course of the last six years.

In the third quarter of 2015, there were 3,857 bankruptcy orders filed – a marginal 3% drop on the second quarter, but a huge 21% decrease from the same period in 2014, mirroring figures not too dissimilar from that we’ve already seen with individual insolvencies.

While the figures may provide evidence of overall year-on-year decreases in both areas, they are also a reminder that personal debt remains a persistent problem. For any help with personal insolvency and bankruptcy, get in touch with Financial Saviour today.

We are fully licensed insolvency practitioners who specialise in financial restructuring and turnaround.

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