Individual insolvencies in the 3rd quarter of  the year has increased almost 20 percent, compared to the same period in 2015, according to the Insolvency Service.

In excess of 24,000 personal insolvencies were recorded during the 3 months ending September 16.  The Insolvency Service confirm that this is principally due to a rise in individual voluntary arrangements (IVAs), of which there were approximately 14,000.

This is more than a 10{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} rise on the previous quarter and nearly 30{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} more year-on-year.

As expected following the launch of the online application process,  debtor’s petition bankruptcies were up, totalling nearly 3,000 (12{06aeb1921e0b802d2bd9c766bc98fb11cc6a46c2b0593ed9c88a0e29cf417a34} higher than the previous quarter).

In contrast, the Insolvency Service said the number of creditor petition bankruptcies has been fairly stable for almost two years.

It added that it’s likely this recent drop is linked to a change in the minimum debt a creditor must be owed to make someone bankrupt, which increased from £750 to £5,000 in October 2015.

There were 6,490 Debt Relief Orders in the 3rd quarter, a 3.7 percent drop on the previous three months, but 15.3 percent higher year on year.

The Insolvency Service attributed this annual rise to a broadening of the eligibility criteria, which took effect in October last year.

Source: Insolvency News

T H Financial Recovery work with both individuals and businesses in financial difficulty. We handle both informal and formal insolvency work, including:

Business Assessment and Restructuring, New Funding Options, Creditor negotiation and time to pay arrangements, Company and Individual Voluntary Arrangements (CVAs & IVAs), Administration, Liquidation, Bankruptcy.

Give us a call to arrange a FREE, no obligation consultation.  Tel: 01772 641146