Number of bankruptcies falls by over a quarter year-on-year

The number of bankruptcies in Q4 2011 fell by over 28% compared with the previous year, according to the insolvency statistics published today by The Insolvency Service.

Alec Pillmoor, Head of Personal Insolvency at Baker Tilly, welcomed the fall in the number of bankruptcies and commented:

“The headline 28% fall in the number of bankruptcy orders made in Q4 2011, compared with the previous year, continues the trend that we have seen as this is the third quarter in a row that the numbers have reduced.

“The fall in bankruptcy numbers is mainly in relation to those caused by consumer debt rather than individuals involved in trading. This is reflected in the recently reported fall in consumer credit during December 2011. It is encouraging to see that the number of people entering Individual Voluntary Arrangements increased by approximately 4% over the previous year as more people take positive action to resolve their financial issues.

“The reduced number of bankruptcies must be viewed as a positive statistic, but it must be remembered that the total number of personal insolvencies remain at a high level, with all the heartache that causes for families.”

Alec Pillmoor is available for further comment on 01482 607305.