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The number of people being declared insolvent in England and Wales fell slightly in the third quarter of this year. 

Latest figures from the Insolvency Service show that cases of personal insolvency dropped by 1% compared to the second quarter of 2011. The total number of bankruptcies, IVAs and debt relief orders in the months July through to September was 30,219. In general number of insolvencies in the last 12 months has remained steady being fixed around 30,000 each quarter.

Bankruptcy and Debt Relief Orders

Although overall insolvency figures have remained steady over the last year there has been a significant shift away from bankruptcy to debt relief orders. In the last year the number of bankruptcies has fallen by as much as 31%. Over the same period the amount of people taking out debt relief orders has been increasing.

Introduced in April 2009 debt relief orders offer a cheaper alternative to declaring bankruptcy. Aimed at the very poorest members of society they are an option for people who have debts of less than £15000 and assets worth no more than £300. To qualify people must also have a surplus income of lower than £50 a month.