The team at Commercial Domestic Investigations are always keeping up to date with the latest quarterly news and official figures.
Official quarter 3 figures have revealed that the number of individual insolvencies increased nearly three percent to more than 19,000.
The Insolvency Service’s latest statistics show that 19,683 people became insolvent between July and September – which is a 2.8 percent rise on the previous three months but a decrease of 18.5 percent compared to the same period on 2014.
The services said this rise was driven by an increase in Individual Voluntary Arrangements (IVA’s), which increased more than nine percent on the previous quarter. However, they are still 18 percent lower than a year ago.
Bankruptcies on the decline
Meanwhile the report revealed that the number of bankruptcies was at the lowest level since 1990. In Q3 there was a 3.3 percent fall on Q2, and a 21.4 percent fall on the same three months on 2014.
Since 2009 the number of bankruptcy orders have been on a decreasing trend. The introduction of Debt Relief Orders (DRO’s) in 2009 is likely to have played a big part in the decreasing numbers.
Mike O’Connor, chief executive of StepChange Debt Charity, said: “It is good to see bankruptcy and debt relief orders reducing, but the fact that overall insolvency levels are rising is a reminder that personal debt remains a persistent problem.
“A rise in IVAs is more likely to be due to volatility in the market as firms respond to Financial Conduct Authority (FCA) regulation, rather than any deeper structural change in the nature of debt problems in the UK.”
“It is also important to remember that insolvency figures don’t reflect the full extent of problem debt. More than 600,000 people contacted us for debt advice last year and insolvency was the right option for just 20 percent of them.”
He added: “We need to focus on the root causes and solutions related to debt, not just the figures. We know from our research that 14m people suffered an income shock last year and nearly half of them used credit to cope.
“Better protections from temporary financial difficulty would help people get back on their feet quickly and prevent them from falling into problem debt.”
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plus. Please contact us on 08444 159200 for more information.