90,000 people entered some form of personal insolvency during 2016, this being the first annual increase since 2010.
The Insolvency Service, which monitors and administers the insolvency regime in England and Wales, confirmed that personal insolvencies reached a total of 90,930 last year. This increase is 13 percent higher than last year.
The figures include 49,745 Individual Voluntary Arrangements (up 23 percent year-on-year).
IVAs were the main driver of the annual rise though an overall bounce in IVA levels since a low point in the middle of 2015, now appears to have slowed down.
There were also 26,196 debt relief orders (DROs) during 2016 (an 8 percent annual increase). Generally, the numbers of DROs have flattened out, after a small rise when the barriers to entry were relaxed.
In contrast there were 14,989 bankruptcies during 2016, a 5 percent drop.
Nevertheless, the extent of personal insolvency remains masked by the lack of reliable statistics on informal debt arrangements.
Coupled with growing household debt levels, the two factors leave an information gap on how many individuals might be teetering on the edge of financial distress.
Source: Insolvency News
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