While overall personal insolvencies fell in the quarter to 30 September 2018 by 2.5 per cent compared to the same period in 2017, the rise in creditor-petitioned bankruptcies suggests that creditors are getting tougher on problem debtors.
The figures released by the Insolvency Service today reveal that there were 25,151 individuals entering either bankruptcy, a debt relief order or an individual voluntary arrangement (IVA).
‘The fall in the total levels of personal insolvencies is to be applauded but this masks the 12 per cent increase in both bankruptcies and DROs compared to the same period last year; the overall reduction is due to a fall in the number of IVAs compared to the same quarter in 2017.
'The number of bankruptcies arising from the petition of creditors increased by 16 per cent compared with the same period in 2017, suggesting that creditors are taking a more robust stance in debt collection. This more robust stance may also reflect the reduced number of IVAs that have been approved by creditors.'