The number of people declaring insolvency in England and Wales has dropped for the first time since 2007.
In the second quarter of this year (April-June) there were 34,743 personal insolvencies, a drop of 3% on the first quarter of 2010. However with insolvencies reaching a record high at the start of this year it is clear that there is still a long way to go in economic recovery.
In response to these figures Brian Johnson at accountants HW Fisher said ‘Its encouraging to see that bankruptcies are down but don’t be misled by this. The fact that both debt relief orders and individual voluntary arrangements (IVA) are still creeping up shows that we are not in the clear yet.’
‘Many consumers are still highly stretched financially and public sector spending cuts are only going to make things worse over the course of the next two years.’
The total number of insolvencies is made up of combined bankruptcies, individual voluntary arrangements and debt relief orders.
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