The amount of people becoming insolvent has fallen to the lowest level since 2005, according to official figures.
Statistics from the Insolvency Service show that there were 20,826 individual insolvencies in Q1 2015. This is a decrease of 8.7% from the previous quarter and 18.6% lower than Q1 2014.
In Q1 2015:
- 4,209 people went bankrupt, a 22.5% fall year-on-year
- 10,405 people entered into an individual voluntary arrangement, 23.5% lower than in Q1 2014
- 1 in 478 people declared insolvency, the lowest rate since Q1 2006.
Peter Tutton, head of policy at StepChange Debt Charity, said:
“The continuing decline in the levels of personal insolvency is welcome news. But with levels of personal borrowing growing rapidly once again, the next government and lenders must ensure that the mistakes of the pre-crisis credit boom are not repeated. Our concern is that growing levels of consumer credit will be followed by growing numbers of people falling into problem debt.”