Rachael Singh, Accountancy Age, Friday 6 August 2010 at 11:47:00

Personal insolvency figures fell for the first time since Q2 2008, andbankruptcies have hit a three year low


Personal insolvency figures fell for the first time since Q4 2007 quarter onquarter, according to the Insolvency Service.

There were 34,743 individual insolvencies for Q2 2010. However, this is adecline from Q1's 35,682 total.

The figures were comprised of 14,982 bankruptcies, 13,466 individualvoluntary arrangements and 6,295 debt relief orders.

Bankruptcies declined to 14,982 in Q2 2010 compared with 18,256 for Q1 2010,and 18,870 for Q2 2009.

Both debt relief orders and individual voluntary arrangements increased in Q12010 compared with the previous quarter, and the same period a year ago.

Deloitte personal bankruptcy specialist Louise Brittain said that despite thelower figures, a high level of individual insolvencies would continue for the "foreseeable future".

Brittain predicts the country will see a rise in the number of personalinsolvencies in the second half of this year, with an estimated end of yearfigure of 140,000.

?The cost of filing for bankruptcy currently stands at 600 ? this is not aninsignificant amount, and as a result we may see an increase in IVAs as the IVAmarket adjusts its pricing to make it more cost effective than bankruptcy,? shesaid.

Further reading:

19%drop in corporate insolvencies in Q2 2010

ICAEWsets up insolvency support for practitioners

LouiseBrittain to probe bankrupt Colin Hendry?s finances