Total individual insolvencies have increased for the first time since the second quarter of 2014 according to Insolvency Service figures.
Reporting on third quarter figures, for 2015, analysis shows that bankruptcies and debt relief orders are falling. However it was a rise in the number of Individual Voluntary Arrangements (IVAs) that caused the increase in total individual insolvency.
The report highlighted:
- bankruptcies are at their lowest level since Q4 1990
- DROs were at the lowest level since Q4 2009.
The figures also indicate that the number of bankruptcies would decrease as people opt for a DRO which was introduced in 2009.
In terms of IVAs alone there was a 9.3% increase from Q2 2015 in the following quarter. When comparing IVA figures in Q3 of 2014 there was an actual decrease of 17.9%.
Total individual insolvency comparison with the same quarter in 2014 shows an 18.5% decrease in total.
Earlier this year the Insolvency Service also released figures showing that the number of women facing insolvency proceedings overtook men in 2014.