October 2014

Falling personal insolvency rates are the recession’s long tail

New statistics released by the Insolvency Service for July – September 2014 show that overall, formal personal insolvencies – that’s bankruptcies, debt relief orders and Individual Voluntary Arrangements (IVAs) – have fallen again, after a slight upward blip in April-June this year.

But the statistics also show that, although the individual insolvency rate had decreased each quarter since mid-2010 (with that one exception in Q2 2014), the rate is still up compared with rates before 2004.

So should we be reassured because numbers are coming down?