Personal insolvencies climb 28%
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The number of people declaring themselves insolvent in Q3 rose 28.2% compared to the same time last year, figures from The Insolvency Service reveal.
There were 35,242 individual insolvencies in England and Wales in Q3, made up of 18,347 bankruptcies, 12,390 Individual Voluntary Arrangements, and 4,505 Debt Relief Orders.
The Debt Relief Order is an individual insolvency procedure which came into effect April 6.
DROs offer over-indebted borrowers an alternative route into personal insolvency, and are suitable for those in debt living in England and Wales who do not own their own home, have no more than £50 a month in surplus income, who have little assets other than possibly a car exceeding £300, and less than £15,000 of debt.
Companies fared slightly better with 4,716 compulsory liquidations and creditors’ voluntary liquidations in Q3.
The number of compulsory liquidations and creditors’ voluntary liquidations has fallen 4.7% from the previous quarter but has risen by14.6% when compared to the same period last year.
