Although the number of personal insolvencies rose in the second quarter of this year, the number of firms going into liquidation decreased compared with the same period in 2013, and administrations, company voluntary arrangements and receiverships were also lower than during the same time a year ago.
According to the Insolvency Service, there were 27,029 individuals entering insolvency, comprising 14,571 Individual Voluntary Arrangements (IVAs), 7,006 Debt Relief Orders (DROs) and 5,452 bankruptcies.
IVAs represented just over half of all personal insolvencies during the period, an increase of 20.3 per cent quarter-on-quarter. IVAs have now reached their highest levels since their introduction in 1987.
Bankruptcy levels decreased by 4 per cent quarter-on-quarter and were down almost 16 per cent since the second quarter of last year, while DROs dropped 7 per cent quarter-on-quarter, less than 2 per cent year-on-year.
Firms fared better too, with the number of companies entering creditors’ voluntary liquidation decreasing for the fourth consecutive quarter. In fact, the level was 18.1 per cent lower in Q2 than during the same period last year and the lowest since the first quarter of 2008.
Meanwhile, the number of firms entering administration decreased for the fourth consecutive quarter and was a sizeable 34.9 per cent lower during the period than in the same quarter in 2013 and was the lowest quarterly figure since the first quarter of 2005.
The number of firms subject to a compulsory winding-up order also decreased but remained in line with the trend seen over the past couple of years. Company voluntary arrangements also decreased. In fact, the liquidation rate in the year ending in June this year was at its lowest level since records began.