Money Debt and Credit

May 10, 2011 03:00 ET

Quarter 1 2011 Sees Fall in UK Bankruptcy

LONDON, UNITED KINGDOM--(Marketwire - May 10, 2011) - Latest figures show that the number of personal insolvencies in the first 3 months of 2011 in England and Wales has fallen to 30,162, a drop of over 15% on the same period in 2010.

Bankruptcy orders were down 30% to 12,539 and there were 10,835 Individual Voluntary Arrangements ("IVAs") in this period, a drop of 8%. Debt Relief Orders (introduced in April 2009) rose by over 20% to 6,788 in the first quarter of 2011.

One in 323 people became insolvent in the first quarter of 2011 compared with 1 in 337 a year ago. This continues to remain at a high level when compared to the average over the last 25 years; 1 in 1,800.

Peter Forsey, Insolvency Practitioner at Money Debt and Credit commented: "We have seen a fall in overall personal insolvency levels in the first quarter of 2011 which is good news, but these statistics should be treated with caution. The Government's planned cuts and other austerity measures, much of which has only recently been introduced, take time to reflect themselves in the official statistics. Interest rates remain low for the moment and whilst some City analysts are expecting them to rise later than in previous months, any rise will clearly add to families' cash pressures.

Many, many people will see cuts in benefits and a rise in income tax only now. This coupled with high inflation in many essential purchases means it's going to be a bumpy ride for some time to come."

Notes for Editors

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