Personal insolvencies in the third quarter of 2016 jumped nearly 20 percent, year-on-year, according to the Insolvency Service.
More than 24,000 people become insolvent in the three months up to the end of September, a factor the Insolvency Service said was driven by a rise in individual voluntary arrangements (IVAs), which came out at around 14,000.
This was more than 10 percent higher on the previous three months and almost 30 percent more year-on-year.
As largely expected given it’s now an online process, bankruptcies made on the petition or application of the debtor were up, reaching close to 3,000.
This was 12 percent higher than the previous quarter.
There were 870 creditor petition bankruptcies between July and September, which was 3.7 percent lower than the previous quarter and 22.6 percent down year on-year.
The Insolvency Service said the number of creditor petition bankruptcies has been fairly stable for almost two years.
It added that it’s likely this recent drop is linked to a change in the minimum debt a creditor must be owed to make someone bankrupt, which increased from £750 to £5,000 in October 2015.
The difference in debt relief orders (DROs) didn’t necessarily demonstrate a trend as clear as bankruptcies and IVAs.
There were 6,490 DROs in the third quarter, a 3.7 percent drop on the previous three months, but 15.3 percent higher year on year.
The Insolvency Service attributed this annual rise to a change to eligibility criteria, which took effect in October last year.