Insolvencies on the decline

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THE number of people being tipped into insolvency fell to its lowest levels in eight years in 2013, official figures show.

There were 101,049 personal insolvencies across England and Wales in 2013, marking a 7.9% decrease on 2012 and the lowest annual total since 2005, according to the Insolvency Service.

Within the figures, the number of bankruptcies dropped by more than one fifth in 2013 compared with 2012. The number of firms being killed off in 2013 also dropped by 7.3% compared with 2012, with 14,982 company liquidations recorded over last year.

Insolvency Service deputy chief executive Graham Horne said: “These statistics show that both company and personal insolvencies are down in 2013.

“In the final quarter of 2013 there were 7% fewer company liquidations and 4.6% fewer personal insolvencies. No-one wants to see people and business getting into trouble and we are working to improve the insolvency regime to make sure it supports people and business in trouble while protecting creditors.”

Last year also marks the first time that debt relief orders (DROs) have overtaken bankruptcies within the personal insolvency figures.

Bankruptcies, which are often seen as a “last resort” and an expensive process to go through, have been running at their lowest levels in over a decade for some time.