Personal insolvencies hit record high

by Gill Montia

Story link: Personal insolvencies hit record high

Official figures show a record number of people being declared insolvent in England and Wales during the three months to the end of September 2009.

According to the Insolvency Service, the quarter saw a 28% annual rise in personal insolvencies, to 35,242, respresenting a 6.6% increase on the second quarter of the year.

Routes out of debt included bankruptcy, individual voluntary arrangements (IVAs) and Debt Relief Orders (DROs).

The latter were introduced this April for people with debts of less than £15,000 and surplus cash amounting to less than £50 per month.

The third quarter saw 18,347 people opt for bankruptcy (up 6.4% year-on-year); 12,390 completed IVAs, (up 20.9%) and 4,505 chose DROs.

Also during the period, company liquidations leapt 14.6% year-on-year but saw a 4.7% decline on the three months to the end of June, at 4,716.

Compulsory company liquidations were down to 1,301, falling 9.8% on the previous three months and 12.9% on the year.